WHAT IS THE FEASIBILITY OF A 3500/24%23$)2%#4%52/0% &5,,2%0/24 LONDON, JANUARY 2009 02%0!2%$&/25%&!"93500/24%23$)2%#4 #ONTENTS

Acknowledgements 3

Executive Summary 4

! -AIN2EPORTS  Belgium 22 Czech Republic 35 France 44 Germany 59 Italy 85 Spain 108

"!DDITIONAL2EPORTS  Austria 125 Croatia 126 England 126 Greece 126 Northern Ireland 127 Republic of Ireland 127 Israel 128 Portugal 129 Sweden 130 Scotland 131 Wales 132

# 2EMAINING5%&! -EMBER!SSOCIATIONS 

3UPPORTERS$IRECT )3".   

!CKNOWLEDGEMENTS

We want to thank all those who have assisted us in researching, writing and Our thanks also go to UEFA for promoting this research and in particular to editing this report. Our frst thanks got to Pau Martrat, who undertook the Alex Phillips, Diederik Dewaele, Giorgio Marchetti, Marc Esselink, Andrea research on France and Spain and assisted with the Belgian report. Traverso, Sefton Perry, Patrick Gasser, Robin Hourican and Thomas Junod. We would also like to express our appreciation to UEFA President Immense thanks must go to the representatives of supporters groups, Michel Platini, whose support for supporters’ involvement in clubs and initiatives and fan projects in Europe who kindly agreed to assist us. Some within UEFA was instrumental in the launching of this study. groups and individuals spoke to us on a condition of anonymity and so we cannot thank them individually here, but we thank them collectively. We Our task was made easier by following in the footsteps of academics, can, however, thank Ashley Green and Carlo Balestri from Progetto Ultrà, writers and researchers and we would like to thank all the authors referred Unsere Kurve, especially Mathias Scheurer (Fan–und Foerderabteilung to in the report, in particular Stephen Morrow, Patrick Mignon, Umberto Eintracht Frankfurt e.V.), Andreas Birnmeyer, Christian Reichert and Lago, Wladimir Andreff, Jiri Novotny and Thomas Kupfer. We also owe Oliver Scheel (HSV Supporters Club), Thomas Weinemann (FPMG a debt of gratitude to the Swiss Institute of Comparative Law, which has Supporters Clubs), Martin Endemann (BAFF), Michael Gabriel (KOS), contributed immensely to this report and to Eleanor Glitch for undertaking Dirk Vos (Supporters Federatie Profclubs), Guido Poppelier (Open the initial editing. Stadium), Luc Houman and Stefaan Leroux (KV Mechelen), Pavel Landa and Antonín Jelínek (Bohemians Supporters Trust), Tomáš Carnogursky In addition, a project with the breath and scope of this study could not have (Fanprojekt Liberec), Federación de Accionistas y Socios del Fútbol been completed without the advice, contacts and knowledge of a various Español – FASFE, in particular José Ángel Zalba (Real Zaragoza), José unaffliated individuals who have shown unstinting support for our goals and Luis Sánchez Ayuso (Señales de Humo, Atlético Madrid), Camilo Puerto our work. In particular, Michael Volkovitsch, Stefano Faccendini, Evelina (Betis), Mr Galiacho (Albacete), Moira Boyd and Emilio Abejón (Señales Pecciarini, Stuart Dykes, Giambattista Rossi, Catherine McLeod and de Humo) and Francisco López (Sevilla CF), Pepin Braña (Sporting de Stephane Lievens all provided critical support at various times. Gijon) and Pepe Hidalgo (Villareal CF) from Afciones Unidas: Asociación de Federaciones de Peñas de Clubes de Fútbol – AFEPE, Ola Soler (MFF Sincere thanks should also go to my colleagues at Supporters Direct, in Support), Pedro Miguel Silva (Associação de Adeptos Sportinguistas) particular Dave Boyle and Kevin Rye for their support throughout the project; and Shay Golub (Israfans), Daniela Wurbs and Kevin Miles (FSI), Anthony Laura Knewstub, Vicki Goodfellow, James Mathie, James Proctor, Tom Weatherill (Federazione Italiana Sostenitori Squadre di Calcio (FISSC)) Hall, Elaine Millar, Christiana Fakeye and Jacqui Forster, who all helped in and Laurance Durand (FAS). various ways from editing, organizing travel to providing a supportive and stimulating environment in which to undertake this report. I would also like We are grateful to the help of the Football and League Associations, to pay thanks to several Supporters Direct Board Members for their support: other football authorities and government offcials. In particular Gerald Brian Lomax, Sean Hamil and Steve Powell and to Philip French, who was von Gorrissen (DFB), Thomas Schneider (DFL), Heidi Deridder (Attaché CEO of Supporters Direct at the time this survey began. Football Unit, Security and Prevention FPS Interior, Belgium), Filip Van Doorslaer (Koninklijke Belgische Voetbal Bond (KBVB/ - Union Royale Finally, I want to thank Georg Rulffes, Jean-Robert Saintil and my family Belge des Societes de Football-Association (URBSFA)), Philippe Diallo for their support. (Union des Clubs Professionnel de Football), André Ramon (Fédération Française de Football (FFF), Jean Patrick Pierre (French Ministry of Youth and Sports), Nathalie Paoli (Olympique de Marseille), Nicolas Blanc, Lukáš Peřybil (Bohemians 1905), Ondřej Zlámal (SK Slavia Praha), Tomáš Křivda Antonia Hagemann (AC Sparta Praha) and Carlos del Campo (Liga de Fútbol Profesional ). Project Manager

%8%#54)6%35--!29 EXECUTIVE SUMMARY LONDON, JANUARY 2009

“Let’s recognise supporters as an essential part of the identity of clubs.”

Michel Platini, election programme, The Future of UEFA

“In an ideal world football clubs would be legally structured and governed in ways that prioritise sporting objectives above fnancial aspects. Moreover, all clubs would be controlled and run by their members – e.g. supporters – according to democratic principles.”

UEFA, strategy document WHAT IS THE FEASIBILITY OF A 3500/24%23$)2%#4%52/0% EXECUTIVE SUMMARY | LONDON, JANUARY 2009

This Executive Summary summarises the full report: “What is the "ACKGROUND feasibility of a Supporters Direct Europe?” The full report is the Supporters Direct in the UK is funded in England by the Football result of a study commissioned by UEFA to investigate the feasibility Stadia Improvement Fund and in Scotland by the Scottish of extending the work undertaken by Supporters Direct within the Government. UK across the remainder of UEFA’s members associations. On the initiative of the UK Presidency of the European Union, The factors underpinning the development of Supporters in 2005, José Luis Arnaut was commissioned to undertake what Direct in the UK were specific to the economic, cultural and became known as the Independent European Sport Review. social circumstances of British football. It was clear that these One of his recommendations directed at the football authorities circumstances would not apply to other European countries with was for them: “TOEXAMINETHEFEASIBILITYOFA%UROPEAN3UPPORTERS differing sporting and legal systems. $IRECTBODY”. Even so, one can make too much of cultural difference and UEFA liaised with Supporters Direct in the UK to address ignore the commonalities. In the European Sports Model, fans this recommendation and funded a 12-month feasibility study, watch players play for clubs, who compete in national leagues and managed by an independent researcher (overseen by Supporters cups and the top clubs in each country play cross-border matches Direct UK) that commenced in July 2007. in competitions organised by UEFA. The creation of the club, the league and the national association as the basic units of spectator football is a shared inheritance across the continent that provides one with a vital common starting point. The sheer passion that exists for football across Europe is another commonality. The growth of the trust movement in the UK is evidence of the desire of football supporters to play a part in the ownership and governance of clubs. This desire is the most central issue, as this is the fuel for the trust movement. Without it, all the policies, reports and support cannot make any impact at all. In assessing the feasibility of a Supporters Direct Europe, it was necessary to answer several related questions. Supporters Trusts in the UK are a grassroots movement, and so the priority was to look at grassroots fan groups and see what their stance was on issues relating to ownership and governance. Did they want to become involved? Had they tried to become involved? What support did they need? The next issues were – assuming a desire existed – how could fans become involved? Looking at their clubs, were they able to become formally involved in ownership and governance, and how could they go about that? Did opportunities exist for them to buy shares or did national legislation or football regulations enable them to become involved as of right without reference to shareholdings?

4(%7)$%30%#425-/&&!.#5,452%3

In most of the countries studied, several different groups with This is not to say that all Ultras are reluctant to engage with their differing aims and objectives were indentified and the relative clubs on a formal representative level. There is evidence (in Italy popularity of these different cultures varied from country to country. especially) of groups and individuals within the Ultra movement There is a spectrum covering, on the one hand, fans who value who recognised the benefits of becoming more involved. independence and non-involvement and, on the other hand, fans In other countries, groups often covered a variety of issues, who wish to become more involved with the clubs, the league often relating to the core experience of supporters in travelling and the national association. In Italy and France, for example, to and watching matches, or tackling racism. some representatives of the Ultra tendency were not hugely Even so, there are many fan groups who understand the concerned about the issue of ownership and governance in their benefits of becoming formally involved in governing their club. Whilst they understood that they could have more influence clubs and looked to the trust model in the UK as a source of by becoming more active in the governance of their clubs and in inspiration. The stage of development of these groups is the national association, this was seen as only a potential benefit. conditioned by the legal and cultural factors present, but they Outweighing this was, in their analysis, the possibility of having all have needs which could be addressed through the services their independence compromised. of a Supporters Direct Europe.

%8%#54)6%35--!29 #/5.429"9#/5.429 BELGIUM CZECH REPUBLIC FRANCE

Most professional football clubs in Belgium In principle, fans are not involved in any Historically, French citizens have shown have adopted the structure of non-profit decision-making processes within their a relatively low level of interest in their organisations. Football supporters in clubs, which are mainly structured as domestic competition when compared to Belgium are currently not particularly joint stock companies and in exceptional other footballing nations of a similar size. involved in the running of their clubs. Clubs circumstances as limited liability companies. There is no tradition of involving fans in the can define and modify their statutes, which However, informal contact between the club management and ownership of the clubs, presents an opportunity for supporters to and its fans, where classic supporters’ club although both the supporters and those become formally involved. issues are discussed, do often exist. running the clubs currently appear to be However, the research has found some Most supporters’ groups currently use comfortable with their existing roles. examples of fan involvement that are informal structures, while the Bohemian The formal links between supporters worth mentioning in this context. The main supporters’ trust is the only one of its kind and the clubs they support typically involve challenge that these local and national in the Czech Republic. There is no national mainly security issues. The French Senate’s groups face are acquiring financial support supporters’ group representing club- report about football supporters should for their day-to-day business and organising based supporters and, according to the be followed with the establishment of a their own legal structure (they often lack information available, nobody is pursuing dialogue between the supporters and the even basic democratic structures). A any intention to establish such a group. football authorities. A Supporters Direct Supporters Direct Europe could help in In principle, the fan scene in the Czech Europe could promote opportunities for promoting services and foster engagement Republic is relatively new and the level of responsible supporters’ groups and foster by responsible fan groups. fan organisation relatively low. Football is engagement with the clubs they support attempting to become the primary sport and the authorities. in the country and advice and information provided by a Supporters Direct Europe could be beneficial at this stage.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? #/5.429"9#/5.429 # GERMANY ITALY SPAIN

Since 1998, professional clubs have had In principle, fans are not involved in In 1992, all professional football clubs the opportunity to move or incorporate any decision-making processes at the whose finances showed a negative their professional football section into an professional clubs in Italy. Although balance had to transform from members’ external limited company that is separate supporter “clubs” are common, little associations into Sports Public Limited from the parent club (the parent club being formal contact of major significance exists Companies (“SADs”), which changed the members’ association). However, the between the clubs and their fanbases the status of supporters dramatically. co-existing members’ associations have to when it comes to matters of governance. Supporters who are dissatisfied with retain a majority shareholding in the newly Nevertheless, initiatives have existed the management of their clubs and separated limited companies. This ‘50+1 where fans have raised enough money, want to improve transparency and good rule’ makes it impossible for investors to bought shares in the club and helped their management have organised themselves take over German football clubs. club to survive. However, the fan groups did as minority shareholders’ associations Meaningful fan involvement within those not see their shares as marketable assets, or have undertaken initiatives at several ownership structures and regulations has and any long-term approach or involvement clubs. Furthermore, supporters are been achieved in several cases. Overall, in running their club seemed alien to them. challenging the current predominant the ownership regulation guarantees the In general, fan groups simply do not have ownership structure of professional opportunity for the members’ association to any strategies, nor do they follow any football clubs in Parliament and wish influence the limited company through the particular ownership and governance to reinstate the structure of members’ 50%+1 vote it must hold in that company. models themselves. associations in Spanish football. The actual influence of independent The most important element for a Collaboration with Supporters Direct supporters clubs and &ANABTEILUNGEN Supporters Direct Europe at this stage UK has already been established to help (fan departments), and Ultra groups, is would be in empowerment and creating, in developing common strategies for dependent on various factors, the most maintaining and supporting responsible enhancing performance, and could be relevant ones being: the ownership fan networks. What is critical is that the continued by a Supporters Direct Europe. structure, governance structures, club existing groups do not remain isolated, This has already seen the formation of two statutes and the fan culture at the respective either in reality or perception. A Supporters groups modelled on trusts in the UK, as clubs. Fan involvement in German football Direct Europe could advise groups on well as the development of a national body has no single model, neither for fan becoming democratically organised and addressing issues related to fans becoming groups which are part of the clubs, nor for offer routes to influence. involved in ownership and governance. independent groups. Hence, the research shows that the standards and levels of fan involvement in the running of their clubs varies from club to club. There are well- respected and organised fan groups on the local and national level, supporting fan democracy and the 50+1 rule. However, the fan groups have not currently developed their agenda far enough to be of much benefit at the club level when it comes to questions of governance, particularly the fact that everybody works on a voluntary basis and therefore lacks time to be further involved.

./4%/.-%4(/$/,/'9 The six countries chosen represent a geographical spread and a compromise between the goals of the project and the available resources. Ideally, it would have been preferable to have surveyed all 53 member associations of UEFA in depth, but this was not practically possible. Whilst there has been existing work on the economics and finances of clubs, for example, there is no study such as this already in existence. Given the diversity of fan culture in each country and the time available for the research, the reports could only give a brief overview of the environments in which fan groups exist in the countries covered. Unfortunately, time did not allow coverage of additional fan groups but this could be studied as part of a development of this initiative.

%8%#54)6%35--!29 Why a Supporters Direct concerned. Supporters Direct has essentially that part of the cause might be a sense of licensed its model and only allows groups to alienation from the club, leading to a sense Europe is needed use its models when it has established that of support being a vicarious pleasure. In the they are BONAüDE supporters committed to long-term, building a sense of involvement 6OLUNTEERS democracy, accountability, non-violence and ownership is a crucial step to bringing One statement heard repeatedly during and non-discrimination. responsibility. In short, people are less likely the research across Europe is that when it This quality control enables groups who to be violent in their own house; the trouble comes to organising fans and making them do not share the principles underpinning for too many clubs and fans is that the a credible force within their clubs, fans are the trust movement to be prohibited from emotional sense of ownership of the stadium hampered by the fact they are volunteers joining it, whilst the complimentary benefits is not matched by a sense of ownership of working in a context of professional sport. of a unity of purpose greatly assist those the club which is responsible for the after- Fans are trying to organise these groups groups within that movement. effects of their behaviour. and organise programmes at the same Of course, in the UK, this is aided by time as having jobs and families. As with all the ability to licence usage of a specific #LUB'OVERNANCE volunteer-run groups, this makes them often legal form (the Industrial and Provident It has been commented that, in many dependent on a small but committed number Society model rules for a supporters countries, fans already have power. In some of individuals, and so an unforeseen change mutual society). It is difficult to implement a countries – notably Germany – fans already in individual circumstances can have a big similar model so easily across Europe, but hold formal power by virtue of the clubs impact on the progress of the wider group. a central body would be able to establish being organised as members’ associations. In this context, a Supporters Direct that all the groups it worked with signed However, as described in the full report, Europe would be able to support the pledges supporting non-violence, non- the actual participation in the governance development of groups as Supporters Direct discrimination and democratic operation. of the clubs by fans varies and large-scale UK have done in the UK. All of the groups are That is only possible though if there is a mass participation is not the norm. The run by volunteers, but because they have central body able to monitor the fulfilment crucial point here is not the active number been able to call upon the work of a central of those pledges. of fans involved and it is unrealistic to expect body including professionals, their efforts supporters to be more interested in the have been more focused and the groups What else could a Supporters governance of the club than the performance are more resilient. A small input in terms of Direct Europe help improve? of the team or the progress on the field. resources can have a much, much bigger However, fans are aware when the impact. In this respect, Supporters Direct &IGHT!GAINST6IOLENCEAND2ACISM governance at the club needs improvement UK has already shown that it has the ability In addition to the quality control issue in order to make the team perform better; to add value, and is convinced that the same mentioned above, there is evidence which an excellent example here is Barcelona. can be achieved outside of the UK. shows that where fan-club relations are For many years, fans had campaigned for a characterised by violence in the stadium, a change to the governance of the club, and 1UALITY#ONTROL sense of involvement and ownership of the linked poor governance to poor financial The supporter scene in Europe is a diverse more responsible and constructive tendency management, which they argued underlay one, but experience in the UK shows that the of fans can make a positive impact in terms poor performance on the field. ability of trusts to become involved in clubs of reducing violence. The issue was not that being a is greatly aided by the confidence clubs can Whilst football-linked violence is a members’ association was a way of have in the quality and attitudes of the groups complex phenomenon, the study found hints guaranteeing success; football is a competitive game and thus outcomes are always in flux. However, the advantage of Barcelona’s governance was that supporters could act to make changes to the governance at their club.

$IALOGUEBETWEEN&ANSAND.ATIONAL &OOTBALL!SSOCIATIONS As part of the study, UEFA surveyed its own members, the 53 national associations, and asked their views regarding their own dialogue with supporters, and their views on providing support to enable a better dialogue between fans and clubs, and fans and national associations.

• The national associations all believe that it is important to improve dialogue with supporters and two-thirds think it is very important to improve this dialogue. Good governance will help supporters to be more representative and become serious responsible partners.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? • Two-thirds of national associations • A Supporters Direct Europe would more able to enter dialogue with clubs, believe that a central national organisation need to be a genuine movement owned national associations and leagues. A advising club-based supporters would be by and responsible to the supporters Supporters Direct Europe would have the beneficial. Good governance of national groups with whom it worked. The independence and credibility to provide supporters’ organisations is crucial to be idea that supporters groups would this service. accepted among fans and associations. be subordinate to an organisation There is also a desire for national • If national associations have a governed from the UK or by UEFA is supporters’ groups to be formed by fans relationship to supporters’ groups they simply not tenable. themselves and by national associations. are often based on security issues (anti • By supporting further work on this A Supporters Direct Europe could advise violence and anti racism) and moving agenda, UEFA will be taking a lead in the on models to help make this happen in a these onto more positive agendas will process started with the Independent mutually beneficial way, ensuring groups improve relationships and outcomes. European Sport Review as part of conform to Europe-wide agreed standards • Nearly half of all national associations believe that it is definitely a good thing for supporters to have a say in the running of H/BSE ARC RVA the club – this, however, would only make SE TO E R sense if they are organised properly. 2ESEARCHFANGROUPS 2 NANCE! Y ER DV provide information V IC O E This clearly shows that there is a desire ' amongst the national associations to "ESTPRACTICE improve their dialogue with supporters. That governance models for club dialogue will be better developed if those and national fan groups national associations could benefit from both #REATINGTRUSTS being aware of best practice in managing supporting national SDs relationships, and that the supporters they wish to engage with have consulted with, and benefited from the advice of, a central body promoting certain aims and principles which are in accord with UEFA’s priorities. the wider policy agenda to improve for democracy, governance and do not In some countries, there is already a governance of fan groups and football become associated with violent, racist or group with whom the national association clubs and tackle some of the problems extreme political groups. is in dialogue, but the survey results show affecting the sport. Having taken such that national associations could benefit a lead, UEFA will be well placed to urge 2ESEARCHANDINFORMATION from additional advice and expertise in others to take action. OBSERVATORYOFFANGROUPS developing their own dialogue. Many fans The research has revealed a wide diversity of begin from a perspective of scepticism There are three key services fan cultures, which contrasts with a tendency about those in authority, and so if the that a Supporters Direct to view fans monolithically. This lack of dialogue is to have legitimacy, any advice understanding has impacted on the ability received by national associations must Europe could provide: of fan groups and authorities to engage be perceived by those fans as credible with each other. Continuing to monitor the &ANGROUPINVOLVEMENTINCLUBS (e.g. given by an organisation with a track development of fan groups will provide a This would be the core service of a record of working for and with supporters). useful tool for UEFA and others, to have Supporters Direct Europe, similar to that credible information. provided in the UK, advising groups on Recommendations The growth of the internet has made forming responsible organisations to information about players and matches -AINCONCLUSIONS become actively involved in the governance widely available to a previously unheard of of their clubs, with Supporters Direct Europe • There is a demand outside the UK for degree. Fans can easily find out the scores promoting robust models and advising on services similar to those provided by for matches in the 4th tier of minor leagues ways forward using national corporate and Supporters Direct UK and a Supporters in Europe, but finding out the situation in football governance frameworks. There is Direct Europe could enhance the relation to ownership, governance and no one-size-fits-all model, but guidance contribution fans can make to a wider the fan scene is often virtually impossible, and advice would have to be tailored agenda of ensuring that clubs are because this report is for all intents according to the groups’ needs, developed financially stable by ensuring they and purposes the first time this kind of in cooperation. A Supporters Direct Europe conform to good governance. information has been brought together in a would offer advice on the different types • Fan groups are already looking to take systematic way. of supporters’ involvement, depending on advantage of this potential support, and the situation. are keen to see the initiative continue. • In addition, a Supporters Direct Europe &ANGROUPGOVERNANCEpCLEARING could contribute to raising the standards For a copy of the full report, please go to: HOUSEFORBESTPRACTICE WWWSUPPORTERS DIRECTORG of supporters groups, helping create Many groups do not yet wish to become partners for dialogue which will benefit For further information, please contact Antonia actively involved in their clubs, but do Hagemann, Project Manager, Supporters Direct Europe: in the first instance clubs in Europe, recognise the value of having a good ANTONIAHAGEMANN SUPPORTERS DIRECTORG but by extension, national associations legal structure and good governance. and UEFA. .OTE The term “supporter” and the term “fan” have They recognise that this makes them been used interchangeably throughout this document.

%8%#54)6%35--!29 RÉSUMÉ LONDON, JANVIER 2009

“Reconnaissons les supporters comme un élément essentiel de l’identité des clubs.”

Michel Platini, programme électoral, L’Avenir de l’UEFA

“Dans un monde idéal, tous les clubs seraient régis et structurés légalement de manière à donner la priorité aux objectifs sportifs sur les objectifs fnanciers et autres. De plus, tous les clubs seraient contrôlés et gérés par leurs membres – par exemple les supporters – selon des principes démocratiques.”

UEFA, document stratégique FAISABILITÉ D’UN ORGANISME EUROPÉEN 3500/24%23$)2%#4 RÉSUMÉ | LONDRES, JANVIER 2009

Le présent document résume le rapport complet concernant la leur permettaient-elles d’acheter des parts ou est-ce que la faisabilité d’un organisme européen Supporters Direct. Ce rapport est législation nationale ou les règles du football prévoyaient leur le résultat d’une étude réalisée à la demande de l’UEFA, qui souhaitait implication en dehors de toute détention d’actions? examiner la possibilité d’étendre le modèle Supporters Direct utilisé au Royaume-Uni (RU) aux autres associations membres de l’UEFA. 3ITUATION Les facteurs sous-tendant le développement du modèle Supporters Direct au RU sont propres aux conditions économiques, Au Royaume - Uni , l ‘ organisme Supporters Direct est financé culturelles et sociales du football britannique. Il est clair qu’il ne par le Football Stadia Improvement Fund en Angleterre et par pourrait pas être appliqué tel quel dans d’autres pays d’Europe dont le gouvernement écossais en Ecosse. les systèmes juridiques et sportifs sont différents. A l’initiative de la présidence britannique de l’Union Il ne faut pas non plus accorder une trop grande importance européenne en 2005, Jose Luis Arnaut a été chargé de ce qui est aux différences culturelles et négliger les points communs. Dans devenu l’%TUDEINDÀPENDANTESURLESPORTEUROPÀEN. le modèle sportif européen, les supporters soutiennent tous des L’une de ses recommandations adressées aux autorités du joueurs qui évoluent dans des clubs; ces derniers participent à des football était «d’examiner la faisabilité d’un organisme européen coupes et des championnats nationaux; et les meilleurs clubs de Supporters Direct». chaque pays disputent des matches internationaux au cours de L’ UEFA a collaboré avec Supporters Direct au RU pour compétitions organisées par l’UEFA. La création du club, de la répondre à cette recommandation et a financé une étude de ligue et de l’association nationale comme unités fondamentales du faisabilité de 12 mois, à compter de juillet 2007, gérée par un football est un héritage commun à tout le continent et une excellente chercheur indépendant (supervisé par Supporters Direct). base de départ, la passion du football dans toute l’Europe étant un autre dénominateur commun. La croissance du phénomène des «trusts» de supporters au RU est la preuve que les supporters désirent jouer un rôle dans la propriété et la gouvernance des clubs. Ce désir est la question centrale, car il constitue le moteur du mouvement. Sans lui, l’impact des mesures, des rapports et du soutien serait nul. Pour évaluer la faisabilité d’un organisme européen Supporters Direct, il fallait apporter une réponse à plusieurs questions annexes. Tout d’abord, les trusts de supporters au RU étant un mouvement du football de base, la priorité était d’examiner les groupes de supporters du football de base et d’étudier leur position sur les questions de propriété et de gouvernance. Voulaient-ils être impliqués? Avaient-ils déjà essayé de l’être? De quel type de soutien avaient-ils besoin? Les questions suivantes étaient de savoir comment impliquer les supporters désireux de l’être? Leur intérêt pour leur club leur donnait- il la capacité de s’impliquer formellement dans la propriété et la gouvernance, et comment pouvaient-ils procéder? Des dispositions

$)6%23)4 #5,452%,,%$%33500/24%23

Dans la plupart des pays étudiés, des groupes aux objectifs représentation formelle au sein de leur club. Certains individus et divers ont été identifiés et la popularité des différentes cultures de groupes au sein des ultras (en Italie notamment) reconnaissaient supporters variait d’un pays à l’autre. les avantages d’un engagement accru. L’éventail allait des supporters privilégiant avant tout leur Dans d’autres pays, les groupes s’occupaient de nombreux indépendance et leur non-implication à ceux souhaitant être thèmes, souvent liés aux expériences faites par les supporters davantage impliqués dans leur club, leur ligue et leur association au cours de leurs déplacements, dans les stades ou en matière nationale. En Italie et en France, par exemple, certains représentants de racisme. des ultras ne se sentaient pas fortement concernés par la question En dépit de cette situation, de nombreux groupes de de la propriété et de la gouvernance de leur club. S’ils comprenaient supporters reconnaissent les avantages d’une implication que leur poids se trouverait accru s’ils s’engageaient davantage formelle dans leur club et s’inspirent du modèle des trusts au niveau de la gouvernance dans leur club et leur association britannique. Le stade de développement de ces groupes est nationale, ce n’était pour eux qu’un avantage théorique. Ils aussi conditionné par des facteurs juridiques et culturels, craignaient davantage de voir leur indépendance compromise. mais tous ont des besoins qui pourraient être satisfaits par un Il ne s’agit pas de dire que tous les ultras s’opposent à une organisme européen Supporters Direct.

%8%#54)6%35--!29 !.!,93%0!930!20!93 BELGIQUE RÉPUBLIQUE FRANCE TCHÈQUE

En Belgique, la plupart des clubs de En principe, les supporters ne sont pas Historiquement, les Français s’intéressent football professionnel ont adopté la impliqués dans les processus de décision relativement peu à leurs compétitions structure d’organisations à but non au sein de leurs clubs, qui sont structurés nationales, en comparaison avec lucratif. Les supporters belges ne sont principalement comme des sociétés par d’autres grandes nations du football. pas particulièrement impliqués dans la actions et, à titre exceptionnel, comme Traditionnellement, les supporters ne sont gestion de leurs clubs. Les clubs peuvent des sociétés à responsabilité limitée. pas impliqués dans la gestion et la propriété définir leurs statuts et les modifier, ce Cependant, il existe souvent des contacts des clubs. Pourtant, tant les supporters que qui permettrait aux supporters d’être informels entre les clubs et leurs supporters les dirigeants des clubs semblent satisfaits formellement impliqués. pour aborder des thèmes classiques. de leurs rôles actuels. Toutefois, nous avons trouvé quelques La plupart des groupes de supporters Les contacts formels entre les exemples d’implication des supporters utilisent actuellement des structures supporters et les clubs qu’ils soutiennent méritant d’être cités ici. Le principal défi informelles, à l’exception du trust des ont principalement trait à la sécurité. Le auquel ces groupes locaux et nationaux supporters bohémiens, qui est l’unique du rapport du Sénat sur les supporters devrait sont confrontés est d’obtenir un soutien genre en République tchèque. Il n’y a pas de permettre l’établissement d’un dialogue financier pour leurs activités quotidiennes groupe national représentant les supporters entre les supporters et les autorités du et l’organisation de leur structure juridique des clubs et, d’après les informations football. Un organisme européen Supporters (les structures démocratiques les plus disponibles, il n’est pas prévu d’en établir Direct élargirait le champ d’action des élémentaires font souvent défaut). Un un. Les mouvements de supporters groupes de supporters responsables et organisme européen Supporters Direct tchèques sont relativement nouveaux encouragerait leur engagement auprès des contribuerait à promouvoir les prestations et leur niveau d’organisation assez bas. clubs qu’ils supportent et des autorités. et l’engagement des groupes de Cependant, le football cherche à devenir le supporters responsables. premier sport du pays; des conseils et des informations fournies par un organisme européen Supporters Direct seraient donc bienvenues à ce stade.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? !.!,93%0!930!20!93 # ALLEMAGNE ITALIE ESPAGNE

Depuis 1998, les clubs professionnels En principe, les supporters ne sont pas En 1992, tous les clubs de football ont pu intégrer ou transférer leur section impliqués dans les processus de décision professionnel dont les finances présentaient de football professionnel à une société des clubs de football professionnel un solde négatif ont dû passer du statut anonyme (SA) externe séparée du club italiens. Il existe peu de contacts généraux d’associations à celui de sociétés (le club ayant un statut d’association). ou formels importants entre les clubs et anonymes à objet sportif (SAD), ce qui Toutefois, les associations coexistantes leurs supporters. a changé considérablement le statut doivent conserver la majorité des actions Néanmoins, des initiatives ont été des supporters. Les supporters qui sont des SA nouvellement formées. Cette règle lancées par des supporters réussissant à mécontents de la gestion de leur club et du 50+1 % empêche les investisseurs de réunir des fonds, à acheter des parts de leur souhaitent en améliorer la transparence prendre le contrôle des clubs allemands. club et à contribuer ainsi à sa survie. Ces et la gouvernance se sont organisés en Un engagement judicieux des groupes de supporters n’ont toutefois pas associations d’actionnaires minoritaires supporters au sein de ces structures et considéré leurs actions comme des actifs et ont pris des initiatives dans plusieurs règles de propriété a été possible dans négociables et ne se sont pas engagés dans clubs. En outre, les supporters contestent de nombreux cas. La réglementation en une démarche à long terme concernant la structure de propriété actuelle des matière de propriété garantit à l’association la gestion de leur club. En règle générale, clubs de football professionnel devant le la possibilité d’influencer la SA en tant les groupes de supporters ne suivent eux- Parlement et souhaitent rétablir le statut qu’actionnaire majoritaire du club. mêmes aucune stratégie particulière ni aucun d’association qui existait auparavant dans L’influence réelle des clubs de supporters modèle de propriété et de gouvernance. le football espagnol. indépendants, des départements de Dans ce contexte, la tâche la plus Une collaboration a déjà été instaurée supporters et des groupes d’ultras dépend importante d’un organisme européen avec Supporters Direct RU pour le de différents facteurs, notamment des Supporters Direct serait d’encourager la développement de stratégies communes structures de propriété et de gouvernance, prise de responsabilité des supporters et permettant d’accroître la performance, et des statuts du club et de la culture des de créer, maintenir et soutenir un réseau de elle pourrait se poursuivre dans le cadre supporters. L’implication des supporters supporters engagés. Le point essentiel est d’un organisme européen Supporters allemands ne suit pas un modèle unique, de rompre l’isolement des groupes existants, Direct. Deux groupes sont déjà nés de ni pour les groupes de supporters qui tant réel que dans opinion publique. Un cette collaboration, sur le modèle des font partie des clubs, ni pour les groupes organisme européen Supporters Direct trusts britanniques, ainsi qu’un organe indépendants. L’étude montre ainsi que les pourrait conseiller les groupes en matière national s’occupant des questions relatives modèles et les niveaux d’implication des d’organisation démocratique et leur proposer à l’implication des supporters dans les supporters dans la gestion des clubs varient des moyens d’influence. questions de propriété et de gouvernance. de l’un à l’autre. Les groupes de supporters sont respectés et bien organisés aux niveaux local et national, ont une structure démocratique et respectent la règle de l’actionnaire majoritaire. Cependant, les groupes de supporters ne sont pas encore suffisamment développés pour soutenir les supporters des clubs dans les questions de gouvernance, et ce pour différentes raisons, dont le fait que les membres de ces groupes sont bénévoles et manquent donc de temps pour un engagement plus important.

./4%3#/.#%2.!.4,!- 4(/$/,/')% Ces six pays présentent une répartition géographique intéressante et constituent un bon compromis entre les objectifs du projet et les ressources disponibles. L’idéal aurait été d’étudier les 53 associations membres de l’UEFA en détail, mais en pratique, c’était impossible. Alors que des travaux ont été effectués concernant, par exemple, la gestion économique et financière des clubs, aucune étude telle que la présente n’a été réalisée à ce jour. Compte tenu de la diversité des cultures des supporters et du temps disponible pour la recherche, le rapport n’a pu donner qu’un bref aperçu de l’environnement dans lequel les groupes de supporters évoluent dans les pays sélectionnés. Malheureusement, le temps n’a pas permis d’étudier d’autres groupes de supporters, mais cette initiative pourrait être développée ultérieurement.

%8%#54)6%35--!29 de démocratie, de résponsabilité, de non- bref, on est souvent moins violent dans sa Pourquoi un organisme violence et de non-discrimination. propre maison. Le problème pour de trop européen Supporters Direct? Ce contrôle de qualité permet d’exclure nombreux clubs et supporters est qu’ils ont les groupes ne partageant pas les principes l’impression de posséder leur stade sans "ÀNÀVOLAT fondateurs du mouvement des trusts et se sentir propriétaires de leur club, qui est d’offrir un fort soutien aux groupes licenciés responsable pour les conséquences du Un problème récurrent lorsqu’il s’agit grâce aux bénéfices d’objectifs communs. comportement indésirable. d’organiser les groupes de supporters Bien entendu, le contexte britannique et d’en faire des interlocuteurs crédibles est favorable puisqu’il est possible d’y 'OUVERNANCEDESCLUBS auprès des clubs est qu’ils fonctionnent obtenir une licence pour l’utilisation d’une avec des bénévoles dans le contexte Il a été noté que, dans de nombreux pays, forme juridique donnée (le modèle des d’un sport professionnel. Les supporters les supporters disposent déjà d’un certain sociétés industrielles et de prévoyance tentent d’organiser ces groupes et leurs pouvoir. En Allemagne notamment, les (Industrial and Provident Society) s’applique programmes parallèlement à leur activité supporters possèdent des droits formels aux sociétés mutuelles de supporters). Il professionnelle et à leur famille. Comme issus du statut d’association des clubs. serait difficile d’instaurer aussi facilement un tous les groupes gérés par des bénévoles, Toutefois, comme décrit dans le système similaire au niveau européen, mais ces groupes dépendent d’un petit nombre rapport complet, la participation réelle un organisme central pourrait imposer aux d’individus très engagés. Dès lors, tout des supporters à la gouvernance des groupes avec lesquels il travaillerait de signer changement personnel peut avoir un impact clubs varie et une participation massive un accord par lequel ils s’engageraient à important sur l’évolution du groupe dans n’est pas la règle. Le point essentiel n’est respecter les valeurs de non-violence, de son ensemble. d’ailleurs pas le nombre de supporters non-discrimination et de démocratie, et en Dans ce contexte, un organisme activement impliqués et il n’est pas réaliste contrôler le respect. européen Supporters Direct permettrait de de s’attendre à ce qu’ils s’intéressent soutenir le développement de ces groupes Autres avantages davantage à la gouvernance du club qu’aux comme il l’a fait au RU. Tous les groupes performances de leur équipe sur le terrain. de supporters britanniques sont aussi d’un organisme européen Les supporters savent cependant quand gérés par des bénévoles, mais l’existence Supporters Direct la gouvernance du club devrait être améliorée d’un organisme central leur a permis de pour optimiser les performances de l’équipe. mieux cibler leurs efforts et d’avoir une plus ,UTTECONTRELAVIOLENCEETLERACISME Citons l’exemple de Barcelone. Pendant de grande stabilité. Un petit investissement nombreuses années, les supporters ont fait Outre le contrôle de qualité mentionné ci- en termes de ressources peut avoir un très campagne pour changer la gouvernance dessus, des preuves attestent que là où grand impact. A cet égard, Supporters du club: ils pensaient que la mauvaise les relations entre les supporters et leur Direct a déjà montré sa valeur ajoutée et est gouvernance entraînait une mauvaise club sont caractérisées par la violence convaincu que ce même modèle peut être gestion financière, qui se répercutait ensuite dans les stades, le sentiment d’implication appliqué en dehors du RU. sur les performances sportives. et de propriété des mouvements de Il ne s’agissait pas de dire que le statut supporters constructifs et responsables #ONTRËLEDEQUALITÀ d’association était la clé du succès, car le peut avoir un impact positif en termes de football est un jeu dont les résultats sont Les mouvements de supporters réduction de la violence. toujours aléatoires. Cependant, l’avantage continentaux sont différents, mais La violence liée au football est un à Barcelone est que les supporters ont pu l’expérience britannique montre que les phénomène complexe. L’étude permet de agir pour faire changer la gouvernance de trusts ont plus de chances d’être impliqués conclure qu’une de ses causes pourrait être leur club. dans les clubs si ces derniers ont confiance un sentiment d’aliénation vis-à-vis du club, dans leur qualité et leur attitude. Supporters induisant une impression de ne vivre sa $IALOGUEENTRELESSUPPORTERSETLES Direct dispose d’une licence pour son passion de supporter que par procuration. ASSOCIATIONSNATIONALESDEFOOTBALL modèle et n’autorise des groupes à l’utiliser Le sens des responsabilités ne peut être que s’il s’agit de supporters qui sont dignes créé à long terme que sur la base d’un Dans le cadre de l’étude, l’UEFA a effectué un de confiance et qui respectent les principes sentiment d’implication et de propriété. En sondage auprès de ses propres membres, les 53 associations nationales, pour leur demander leur avis concernant le dialogue avec les supporters et le soutien à un meilleur dialogue entre supporters d’un côté et clubs et association nationale de l’autre.

• Les associations nationales estiment toutes qu’il est important – voire très important pour deux tiers d’entre elles – d’améliorer le dialogue avec les supporters. Une bonne gouvernance permettrait aux supporters d’être mieux représentés et de devenir des partenaires véritables et responsables. • Deux tiers des associations nationales estiment qu’une organisation centrale nationale conseillant les supporters

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? des clubs serait bénéfique. Une bonne associations nationales et à l’UEFA. mieux en mesure d’entamer le dialogue gouvernance des organisations • L’organisme européen Supporters avec les clubs, les ligues et les associations nationales de supporters est essentielle Direct devrait être un mouvement nationales. Un organisme européen pour qu’elles soient acceptées par les authentique émanant des groupes de Supporters Direct aurait l’indépendance et la supporters et les associations. supporters avec lesquels il travaillerait crédibilité requises pour fournir ce service. • Les relations que les associations et responsable envers eux. L’idée d’une Un désir actuel est que les groupes nationales entretiennent avec les subordination de ces groupes à une nationaux de supporters soient formés groupes de supporters sont souvent organisation contrôlée par le RU ou par les supporters eux-mêmes et par les en rapport avec la sécurité (lutte contre l’UEFA n’est pas défendable. associations nationales. Un organisme la violence et le racisme). Nouer des • En soutenant les activités entreprises dans européen Supporters Direct pourrait les contacts sur une base plus positive ce cadre, l’UEFA prendra la tête des efforts conseiller sur les modèles avantageux améliorerait les relations et les résultats. entrepris avec l’%TUDEINDÀPENDANTESURLE pour les deux parties et s’assurer que • Presque la moitié des associations SPORTEUROPÀEN, l’objectif plus large étant ces groupes respectent les valeurs nationales considèrent que les supporters d’améliorer la gouvernance des groupes européennes en matière de démocratie et devraient avoir leur mot à dire dans la de supporters et des clubs de football et de gouvernance et qu’ils ne s’associent gestion des clubs, ce qui n’est possible de résoudre certains problèmes affectant pas à des groupements violents, racistes que s’ils sont bien organisés. ce sport. Ayant donné l’exemple, l’UEFA ou extrémistes. sera bien placée pour recommander Ce sondage montre clairement que les vivement des mesures. associations nationales désirent améliorer leur dialogue avec les supporters. Ce dialogue pourra s’établir sur de meilleures OIREDERE bases si ces associations connaissent AT CH RV E E GO R les meilleures pratiques en termes de %TUDESURLESGROUPESDESUPPORTERS S DE UV C B S E H IL RN E gestion des relations et si elles savent Fournir des informations / E A S N N que les supporters avec lesquels elles C O -EILLEURESPRATIQUES E veulent entrer en contact ont bénéficié # Modèles de gouvernance pour les clubs des conseils d’un organisme central et les groupes de supporters nationaux promouvant certains buts et principes en accord avec les priorités de l’UEFA. #RÀATIONDETRUSTS Certaines associations nationales ont Soutenir les SD nationaux déjà entamé le dialogue avec un groupe, mais les résultats de l’enquête montrent que même celles-ci pourraient bénéficier de conseils et d’informations spécialisées 2ECHERCHEETINFORMATIONOBSERVATION pour développer le dialogue de leur côté. Trois services clés fournis DESGROUPESDESUPPORTERS De nombreux supporters sont sceptiques par un organisme européen Les recherches ont révélé une grande vis-à-vis des autorités, donc si le dialogue diversité dans les cultures des supporters, a une légitimité, ils percevront les conseils Supporters Direct: qui contraste fortement avec une reçus des associations nationales comme )MPLICATIONDESGROUPESDESUPPORTERS perception monolithique de ces derniers. crédibles (par ex. conseils donnés par une DANSLESCLUBS C’est ce manque de compréhension organisation au bénéfice d’une longue Il s’agirait du service de base d’un organisme qui a pesé sur la capacité des groupes expérience du travail avec et pour les européen Supporters Direct, qui, selon le de supporters et des autorités à entrer supporters). modèle britannique, conseillerait les groupes en relation. Continuer à observer le Recommandations sur la manière de créer des organisations développement des groupes de supporters responsables et solides s’impliquant offrira en outre un outil très utile à l’UEFA #ONCLUSIONSPRINCIPALES activement dans la gouvernance de leurs et aux autres organismes pour obtenir des clubs, mais en fonction de la structure informations crédibles. • En dehors du RU, il y a un besoin de nationale en matière de sociétés et de La croissance d’Internet a rendu les services similaires à ceux fournis par gouvernance du football. Il n’existe pas de informations sur les joueurs et les matches Supporters Direct; un organisme européen modèle unique: les conseils devront être disponibles à un niveau jamais atteint Supporters Direct permettrait d’optimiser adaptés aux besoins des groupes et le auparavant. Les supporters peuvent trouver la contribution que les supporters peuvent développement coordonné. Un organisme les résultats de matches de 4e division apporter à la bonne gouvernance des européen Supporters Direct permettrait de dans des ligues mineures européennes, clubs et ainsi à leur stabilité financière. choisir parmi différents types d’engagement mais il est impossible de se renseigner sur • Les groupes de supporters ont hâte des supporters selon la situation. la situation en matière de propriété et de de bénéficier de ce soutien potentiel et gouvernance et sur les mouvements de souhaitent que l’initiative prenne corps. 'OUVERNANCEDESGROUPESDE supporters, car ce rapport est pratiquement • En outre, un organisme européen SUPPORTERSLESMEILLEURESPRATIQUES le premier du genre. Supporters Direct contribuerait à élever le De nombreux groupes ne veulent pas niveau des groupes de supporters, faisant encore d’une participation active dans leur Le rapport complet est disponible sur le site: d’eux de meilleurs partenaires pour le club mais reconnaissent la valeur d’une WWWSUPPORTERS DIRECTORG dialogue, ce qui bénéficierait en premier bonne structure juridique et d’une bonne Pour plus d’informations, veuillez contacter Antonia lieu aux clubs en Europe, mais aussi aux gouvernance, grâce auxquelles ils seraient Hagemann, responsable du projet Supporters Direct Europe: ANTONIAHAGEMANN SUPPORTERS DIRECTORG %8%#54)6%35--!29 :53!--%.&!335.' LONDON, JANUAR 2009

“Wir müssen die Fans als wichtiges Element der Identität der Klubs anerkennen.”

Michel Platini, Wahlprogramm, Die Zukunft der UEFA

“Vorstellung einer idealen Welt: Alle Klubs haben eine rechtliche Struktur und werden auf eine Art und Weise geleitet, die sportliche über fnanzielle Ziele stellt. Alle Klubs werden gemäss demokratischen Grundsätzen von ihren Mitgliedern, z.B. Fans, kontrolliert und geführt.”

UEFA, Strategiepapier IST EIN EUROPÄISCHES NETZWERK FÜR FAN-MITBESTIMMUNG NACH DEM MODELL VON 3500/24%23$)2%#4-!#("!2 ZUSAMMENFASSUNG | LONDON, JANUAR 2009

Dies ist eine Zusammenfassung des Berichts „Ist ein europäisches (INTERGRUND Netzwerk für Fan-Mitbestimmung nach dem Modell von Supporters Direct machbar?“ Der vollständige Bericht ist das Ergebnis einer Supporters Direct wird in England durch den Football Stadia von der UEFA in Auftrag gegebenen Studie im Hinblick auf die Improvement Fund finanziert, in Schottland von der Regierung. Ausweitung der Arbeit von Supporters Direct in Grossbritannien Auf Initiative der damaligen britischen EU-Ratspräsidentschaft auf die übrigen UEFA-Mitgliedsverbände. wurde im Jahr 2005 José Luís Arnaut beauftragt, eine Supporters Direct entstand infolge von bestimmten unabhängige Studie zum europäischen Sport durchzuführen. wirtschaftlichen, kulturellen und gesellschaftlichen Eigenheiten Eine seiner Empfehlungen an die Fussballorganisationen des britischen Fussballs. Natürlich sind in anderen europäischen lautete, die Machbarkeit eines europäischen Netzwerkes für Ländern mit anderen Sport- und Rechtssystemen nicht dieselben Fan-Mitbestimmung nach dem Modell von Supporters Direct Grundvoraussetzungen anzutreffen. zu prüfen. Andererseits dürfen die kulturellen Unterschiede nicht Die UEFA kontaktierte daraufhin Supporters Direct und überbewertet und dabei die Gemeinsamkeiten vergessen werden. In finanzierte eine zwölfmonatige Machbarkeitsstudie, die von einer Europa verfolgen Fans ihre Klubs, die in nationalen Ligen als auch in unabhängigen Expertin (unter Aufsicht von Supporters Direct) Pokalwettbewerben gegeneinander antreten. Gleichzeitig bestreiten durchgeführt wurde und im Juli 2007 begann. die Spitzenklubs von der UEFA organisierte, länderübergreifende Wettbewerbe. Fussball ist in allen europäischen Ländern auf den gleichen Grundelementen aufgebaut – Verein, Liga und Nationalverband. Eine weitere Gemeinsamkeit in ganz Europa ist die Leidenschaft für den Fussball. Die wachsende „Supporters Trust“ – Bewegung in Grossbritannien ist Ausdruck des Wunsches von Fans, an den Klubs und ihrer Führung beteiligt zu sein. Dies ist ein zentraler Punkt und gleichzeitig der Motor für diese Bewegung. Ohne den Willen der Fans sind alle Beschlüsse, Berichte und Massnahmen wirkungslos. Im Vorfeld der Studie mussten einige grundsätzliche Fragen geklärt werden. Die britische 3UPPORTERS 4RUST "EWEGUNG geht von der Basis aus. Deshalb musste herausgefunden werden, wie Fangruppierungen zur Mitbestimmung in ihren Klubs und deren Führung stehen. Wollen sie beteiligt sein? Haben sie es versucht? Welche Unterstützung brauchen sie? Angenommen, der Wunsch nach Mitbestimmung existiert, so war die nächste Frage die nach dem Wie. Schafften sie es, formell an ihren Klubs und deren Führung beteiligt zu werden, und wie gingen sie dabei vor? Konnten sie Anteile am Klub erwerben oder ermöglichten die nationale Gesetzgebung bzw. für den Fussball geltende Regelungen in ihrem Land eine Beteiligung unabhängig vom Besitz von Anteilen?

$!37%)4%30%+425-$%2&!.+5,452%.

In den meisten untersuchten Ländern gibt es mehrere Gruppen mit gibt es Hinweise darauf, dass bestimmte Gruppen und unterschiedlichen Zielen. Die Beliebtheit der einzelnen Arten von Einzelpersonen innerhalb der Ultra-Szene sich der Vorteile Fankultur war von Land zu Land verschieden. einer stärkeren Beteiligung bewusst sind. So gibt es einerseits Fans, denen Unabhängigkeit und somit In anderen Ländern kümmern sich Fangruppen um eine Nichtbeteiligung wichtig sind; andere möchten stärker in die Klubs, den Vielzahl von zentralen fanspezifischen Bereichen, häufig Ligen und den Nationalverband eingebunden werden. In Italien und in Verbindung mit den Reisen zu Spielen und den Spielen Frankreich beispielsweise waren die Ultras teilweise nicht besonders selbst oder mit der Bekämpfung von Rassismus. an der Beteiligung an Klubs und deren Führung interessiert. Ihnen war Trotzdem wissen viele Fangruppen um die Vorteile zwar bewusst, dass sie grösseren Einfluss bekommen könnten, wenn einer formellen Beteiligung an der Klubführung und sehen sie sich aktiver an der Führung der Klubs oder im Nationalverband das britische Trust-Modell als Quelle der Inspiration. Die engagieren würden, doch ist dies lediglich eine theoretische Möglichkeit, Entwicklung der einzelnen Gruppen hängt von den rechtlichen da es eine Einschränkung ihrer Unabhängigkeit bedeuten würde. und kulturellen Bedingungen des jeweiligen Landes ab, doch Das soll nicht heissen, dass alle Ultras sich dagegen sträuben, sie alle haben Anliegen, bei denen ein europäisches Netzwerk formell in ihren Klubs repräsentiert zu sein. Besonders in Italien für Fan-Mitbestimmung weiterhelfen könnte.

%8%#54)6%35--!29 ,!.$&³2,!.$ BELGIEN TSCHECHISCHE FRANKREICH REPUBLIK

Die meisten Profi-Fussballklubs in Belgien Grundsätzlich sind Fans hier nicht an den Historisch haben Franzosen verglichen mit sind wie gemeinnützige Organisationen Entscheidungsfindungsprozessen der Klubs anderen Fussballnationen vergleichbarer aufgebaut. Fans sind in Belgien derzeit beteiligt, die meist Aktiengesellschaften Grösse relativ wenig Interesse an ihren nicht besonders stark in die Führung ihrer und in Ausnahmefällen Gesellschaften nationalen Fussballwettbewerben gezeigt. Klubs eingebunden. Die Klubs können ihre mit beschränkter Haftung sind. Allerdings Es gibt keine traditionelle Beteiligung von Satzungen jedoch selbständig festlegen bestehen oftmals informelle Kontakte Fans an Klubs oder an deren Führung, wobei und ändern, was die formelle Einbindung zwischen Vereinen und ihren Fans, bei sowohl Fans als auch Klubführung mit ihrer von Fans ermöglichen würde. denen klassische Fanklub-Belange aktuellen Rolle zufrieden zu sein scheinen. Im Rahmen der Studie traten allerdings besprochen werden. Formelle Kontakte zwischen Fans und einige erwähnenswerte Beispiele zu Tage. Die meisten aktuellen Fangruppierungen Klubs bestehen hauptsächlich hinsichtlich Die grösste Schwierigkeit für lokale und sind informelle Zusammenschlüsse; der Sicherheitsfragen. Im Anschluss an den nationale Fangruppierungen besteht darin, Supporters Trust des Klubs Bohemians Bericht des französischen Senats zum finanzielle Mittel für ihr Tagesgeschäft 1905 ist der einzige seiner Art in Tschechien. Thema Fussballfans sollte ein Dialog aufzutreiben und ihre rechtliche Struktur Es gibt keinen nationalen Zusammenschluss zwischen Fans und Fussballorganisationen festzulegen (oft fehlen sogar grundlegende von Fangruppen und laut den verfügbaren aufgebaut werden. Ein europäisches demokratische Strukturen). Ein europäisches Informationen ist auch nichts dergleichen Netzwerk für Fan-Mitbestimmung nach Netzwerk für Fan-Mitbestimmung könnte geplant. Grundsätzlich ist die Fanszene dem Modell von Supporters Direct könnte neue Tätigkeitsfelder anregen und in Tschechien relativ neu und das verantwortungsbewussten Fangruppen verantwortungsvolle Fangruppen zu mehr Organisationsniveau recht gering. Der zeigen, wo sie sich einbringen können, und Engagement ermutigen. Fussball strebt an, zur Sportart Nummer sie zu mehr Engagement in ihren Klubs und Eins im Land zu werden, und Ratschläge und im Verband ermutigen. Informationen seitens eines europäischen Netzwerkes für Fan-Mitbestimmung könnten hierbei von Nutzen sein.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? ,!.$&³2,!.$ # DEUTSCHLAND ITALIEN SPANIEN

Seit 1998 können Profiklubs in Deutschland Grundsätzlich sind Fans in Italien nicht 1992 mussten alle Profifussballklubs, ihre Berufsfussball-Abteilung in eine externe in Entscheidungsfindungsprozesse in die in ihren Büchern eine negative Bilanz Kapitalgesellschaft, die vom Mutterverein Profiklubs eingebunden. Es besteht im aufwiesen, sich von einem Verein in (d.h. dem „eingetragenen Verein“) getrennt Allgemeinen wenig erwähnenswerter eine Sport-Aktiengesellschaft („S.A.D.“) ist, auslagern oder in eine solche eingliedern. Kontakt, auch formeller Natur, zwischen umwandeln, was den Status der Fans Allerdings muss der Mutterverein Klubs und ihren Fans. dramatisch veränderte. Mit der Führung die Mehrheit der Stimmen der neuen Dennoch hat es Initiativen von Fans ihrer Klubs unzufriedene Fans, die mehr Kapitalgesellschaft besitzen. Diese gegeben, die genug Geld zusammen- Transparenz und ein besseres Management „50+1 Regel“ verhindert eine Übernahme brachten, um sich in ihren Klub einzu- wollen, haben sich in Verbänden von deutscher Fussballklubs durch Investoren. kaufen und ihm das Überleben zu sichern. Minderheitsanteilseignern zusammengetan; In mehreren Fällen haben sich im Rahmen Allerdings sehen solche Fangruppen ihre in verschiedenen Klubs ergriffen sie die dieser Vorgaben erwähnenswerte Fan- Anteile nicht als gewinnbringende Inves- Initiative. Zudem fechten Fans vor dem Beteiligungen entwickelt. Generell bietet die titionen, und langfristige Vorhaben oder Parlament die derzeit vorherrschenden 50+1 Regel den Mitgliedern die Möglichkeit, die Beteiligung an der Klubführung sind Besitzverhältnisse bei Profiklubs an die Klubpolitik über den Mutterverein als für sie eine seltsame Vorstellung. Generell und wollen eine Wiedereinführung Mehrheitseigner zu beeinflussen. verfolgen die dortigen Fangruppen keine von Vereinsstrukturen („Verein“ als Der tatsächliche Einfluss von unab- bestimmte Strategie und orientieren sich Zusammenschluss von Mitgliedern) im hängigen Fanklubs, Fanabteilungen oder nicht an bestimmten Beteiligungs – und spanischen Fussball. Ultra-Gruppen hängt von verschiedenen Führungsmodellen. Es wurde bereits eine Zusammenarbeit Faktoren ab, darunter die Eigentumsver- Die wichtigste Aufgabe für eine eu- mit Supporters Direct in Grossbritannien hältnisse, die Führungsstrukturen, die ropäische Netwerk für Fan-Mitbestimmung initiiert, die zum Aufbau einer allgemeinen Vereinssatzung und die Fankultur rund wäre es momentan, die Fans zur Übernahme Strategie zur Verbesserung der eigenen um den jeweiligen Klub. Es gibt kein ein- von Verantwortung zu bestärken und verant- Arbeit beitragen soll. Dies könnte mit einer heitliches Modell für Fan-Mitbestimmung wortungsvolle Fan-Netzwerke zu schaffen, europäischen Bewegung fortgesetzt in Deutschland, weder für klubeigene zu erhalten und zu unterstützen. Wichtig werden. Als Folge wurden bereits zwei Fanabteilungen noch für unabhängige Fan- dabei ist, dass die bestehenden Gruppen Gruppen nach dem britischen 3UPPORTERS klubs. Die Studie ergab, dass Qualität und nicht isoliert bleiben, sei es tatsächlich 4RUST– Vorbild gegründet und ein nationales Ausmass der Mitbestimmung von Fans an oder in der öffentlichen Wahrnehmung. Ein Gremium geschaffen, das sich um die der Klubführung von Verein zu Verein ver- europäisches Netzwerk für Fan-Mitbestim- Thematik von an Klubs und deren Führung schieden sind. Es gibt respektierte, organ- mung nach dem Modell von Supporters beteiligten Fans kümmert. isierte Fangruppen auf lokaler und nation- Direct könnte Fangruppen anleiten, wie sie aler Ebene, die sich fuer den Erhalt der 50+1 sich demokratisch organisieren und an Ein- Regel und mehr Mitspracherechte fuer Fans fluss gewinnen können. aussprechen. Allerdings sind die Fangruppierungen bisher nicht so organisiert, dass sie anderen Gruppen Hilfestellung leisten können, wenn es um deren Beteiligung an der Klubführung geht. Dies liegt an mehrerlei Faktoren und teilweise daran, dass es sich durchgängig um ehrenamtliche Arbeit handelt und dass den Beteiligten oft die Zeit für Engagement fehlt.

!.-%2+5.':52-%4(/$)+ Die sechs ausgewählten Länder zeigen einen geografischen Querschnitt und einen Kompromiss zwischen den Projektzielen und den vorhandenen Ressourcen. Ideal wäre es gewesen, in der Studie alle 53 UEFA-Mitgliedsverbände eingehend zu untersuchen, doch dies war aus praktischen Gründen unmöglich. Zwar gibt es bereits Arbeiten zu den wirtschaftlichen und finanziellen Verhältnissen von Klubs, aber noch keine Studie wie diese. Aufgrund der Unterschiede zwischen den Fankulturen der einzelnen Länder und des zeitlichen Rahmens des Projekts konnte nur ein kurzer Überblick über die Bedingungen gegeben werden, unter denen Fangruppen in den untersuchten Ländern existieren. Leider war es aus Zeitgründen unmöglich, weitere Fangruppen zu analysieren, doch könnte dies im Rahmen einer Weiterführung dieses Projektes geschehen.

%8%#54)6%35--!29 Direct ist ein Lizenzmodell, das Fangrup- dessen Führung aufgebaut werden. Anders Gründe für ein europäisches pen nur verwenden dürfen, wenn bestätigt gesagt: Es ist weniger wahrscheinlich, dass Netzwerk für wurde, dass es sich um vertrauenswürdige jemand bei sich „zu Hause“ gewalttätig ist. Fans handelt, die hinter Demokratie, Ver- Das Problem in vielen Klubs ist, dass die Fan-Mitbestimmung antwortlichkeit, Gewaltverzicht und Nich- Fans zwar denken, dass ihnen das Stadion tdiskriminierung stehen. gehört, nicht aber, dass ihnen auch der %HRENAMTLICH"ESCH»FTIGTE Durch eine solche Qualitätskontrolle Verein gehört, der für die Folgen ihres Im Zusammenhang mit der Organisation von können Gruppen, die diese Grundsätze nicht Benehmens geradestehen muss. Fans und der Frage, inwieweit sie innerhalb teilen, aus der Supporters Trust-Bewegung +LUBFÓHRUNG ihres Vereins ernst genommen werden, ausgeschlossen werden. Gleichzeitig helfen wird immer wieder gesagt, dass es von einheitliche Ziele innerhalb der Bewegung Wie gesagt sind in vielen Ländern die Nachteil sei, als Ehrenamtliche innerhalb allen angeschlossenen Gruppierungen. Fans bereits an Entscheidungsprozessen eines Profisports zu arbeiten, neben dieser In Grossbritannien half die Tatsache, beteiligt. Mancherorts – v.a. in Deutschland Aufgabe (Organisation von Fangruppen dass das Auftreten unter einer bestimmten – haben sie bereits formell Einfluss, und Projekten) auch berufstätig zu sein und Rechtsform („Industrial and Provident da die Klubs als eingetragene Vereine eine Familie zu haben. Wie alle ehrenamtlich Society“) lizenziert werden konnte. organisiert sind. geführten Gruppen sind Fangruppierungen Ähnliches dürfte auf gesamteuropäischer Allerdings fällt die tatsächliche Mit- deshalb oft auf eine kleine Anzahl engagierter Ebene schwieriger umzusetzen sein, doch bestimmung an der Klubführung sehr Personen angewiesen. Dadurch können sich ein zentrales Gremium könnte festlegen, unterschiedlich aus und ein grossflächiges Veränderungen der Lebensumstände von dass alle Gruppen, mit denen es arbeitet, Engagement vieler ist nicht die Regel. Das Einzelnen unter Umständen entscheidend sich zu den oben genannten Zielen Entscheidende ist dabei nicht die Zahl der auf die Weiterentwicklung der ganzen bekennen. Dies ist jedoch nur möglich, aktiv beteiligten Fans. Es ist unrealistisch Gruppe auswirken. wenn dieses Gremium die Einhaltung dieser zu erwarten, dass Fans an der Klubführung Ein europäisches Netzwerk für Fan-Mit- Verpflichtung überwachen kann. mehr Interesse haben könnten als an der bestimmung könnte den Aufbau von Fan- Leistung der Mannschaft. gruppen unterstützen, wie geschehen in Weitere Vorteile eines Allerdings merken Fans durchaus, Grossbritanien. Dort werden alle Gruppen europäischen Netzwerkes wenn die Klubführung besser werden von ehrenamtlich Beschäftigiten geführt, muss, um die Leistungen der Mannschaft doch da diese auf das Know-How eines für Fan-Mitbestimmung zu verbessern; ein gutes Beispiel hierfür zentralen Gremiums zurückgreifen kön- ist Barcelona. Jahrelang hatten sich Fans +AMPFGEGEN'EWALTUND2ASSISMUS nen, arbeiten sie gezielter und die Gruppen für Veränderungen in der Klubführung sind stabiler. Eine kleine Investition kann In Fällen, in denen die Beziehung zwischen eingesetzt und eine schlechte Führung eine grosse Wirkung haben. Supporters Fans und Verein durch Stadiongewalt für ein schlechtes Finanzmanagement Direct hat in Grossbritannien bewiesen, belastet ist, kann eine Beteiligung von verantwortlich gemacht, das ihrer Meinung dass es einen Beitrag leisten kann, und verantwortungsvollen und konstruktiven nach die Ursache für die schlechten ist überzeugt, dass dies auch in anderen Fans am Klub zu einer Verminderung der Leistungen auf dem Platz war. Ländern möglich ist. Gewalt beitragen. Die Frage war nicht, ob der Klub als Gewalt in der Fussballszene ist ein Zusammenschluss von Mitgliedern eine 1UALIT»TSKONTROLLE komplexes Phänomen, doch die Studie Erfolgsgarantie haben würde; Fussball lässt darauf schliessen, dass ein Grund ist ein Spiel und die Resultate sind stets Die Fanszene ist vielschichtig, doch die das Gefühl der Entfremdung vom eigenen schwankend. Allerdings war der Vorteil britische Erfahrung hat gezeigt, dass Verein sein kann, was dazu führt, dass zwar an der Klubstruktur in Barcelona, dass die Supporters Trusts viel bessere Chancen der Klub unterstützt wird, aber keine direkte Fans etwas tun konnten, um Veränderungen haben, Beteiligung an Klubs zu erhalten, Identifikation mehr stattfindet. Auf lange in der Klubführung zu erreichen. wenn Letztere sich auf Qualität und Ein- Sicht kann Verantwortungsbewusstsein stellung der jeweiligen Gruppierung verlas- nur durch Mitbestimmung im Klub und $IALOGZWISCHEN&ANS sen können. Das Modell von Supporters UND.ATIONALVERBAND Im Rahmen der Studie fragte die UEFA ihre 53 Mitgliedsverbände nach deren Ansicht zu ihrem eigenen Dialog mit den Fans und zur Unterstützung eines besseren Dialogs zwischen Fans und Klubs sowie Fans und Nationalverband.

• Alle Nationalverbände sind der Auffassung, dass es wichtig ist, den Dialog zu ver- bessern; zwei Drittel halten dies sogar für sehr wichtig. Eine gute Führung hilft Fans, besser repräsentiert zu sein und echte, ve- rantwortungsvolle Partner zu werden. • Zwei Drittel der Verbände glauben, dass ein zentrales, nationales Gremium zur Beratung von Klubfans nützlich wäre. Eine

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? gute Führung eines solchen Gremiums verantwortlich sein. Die Vorstellung, dass an, dass sie dadurch als Gesprächspartner ist Voraussetzung für die Akzeptanz Fangruppen einer britischen oder UEFA- für Klubs, Nationalverbände und Ligen vonseiten der Fans und Verbände. Organisation untergeordnet sind, ist nicht attraktiver werden. Ein europäisches • Sofern Beziehungen zwischen Verbänden tragbar. Netzwerk für Fan-Mitbestimmung wäre und Fangruppen bestehen, geht es oft • Durch die weitere Arbeit in diesem Bereich unabhängig und glaubwürdig genug, eine um Sicherheitsfragen (Verhinderung von wird die UEFA eine Führungsposition in solche Dienstleistung anzubieten. Gewalt und Rassismus). Ein positiverer diesem Prozess einnehmen, der mit der Es besteht auch ein Wunsch nach Ansatz in diesem Bereich könnte Unabhängigen Studie zum europäischen nationalen Fangruppierungen, die von Beziehungen und Resultate verbessern. Sport begann und bei dem es darum Fans und Nationalverbänden gegründet • Fast die Hälfte aller Verbände findet, geht, die Führung von Fangruppen und werden. Ein europäisches Netzwerk für dass die Fans bei der Führung ihres Fussballklubs zu verbessern und einige Fan-Mitbestimmung nach dem Modell Klubs mitreden sollten – allerdings wäre der grössten Probleme im Fussball zu von Supporters Direct könnte Ratschläge dies nur dann sinnvoll, wenn sie gut beseitigen. Als Leiterin eines solchen zu Modellen geben, mit denen dies auf organisiert sind. Prozesses kann die UEFA auch andere zu für beide Seiten befriedigende Weise mehr Engagement ermutigen. geschehen könnte. So könnten Gruppen Daraus geht hervor, dass die National- verbände den Dialog mit den Fans verbessern möchten. Dies kann geschehen, SOBSE NG RVA wenn die Verbände sowohl Empfehlungen &ANGRUPPEN &ORSCHUNG HU TO C R für die Beziehungen mit Fans folgen und Informationen bereitstellen RS ANCE " IU O RN ER M & E A die Fans, die sie einbeziehen möchten, eine V T %MPFEHLUNGEN O U N Beratung von einem zentralen Gremium ' Führungsmodelle für Klubs G erhalten haben, das bestimmte Ziele und und nationale Fangruppen Grundsätze verfolgt, die den Prinzipien der UEFA entsprechen. 'RÓNDUNGVON4RUSTS In einigen Ländern gibt es Unterstützung für nationale SDs bereits Gruppierungen, die mit dem Nationalverband im Dialog stehen, doch die Umfrage hat ergeben, dass die Verbände von zusätzlicher Beratung und Expertise bei der Weiterentwicklung dieses Ein europäisches Netzwerk nach europaweit einheitlichen Demokratie Dialogs profitieren könnten. Viele Fans und Führungsstandards entstehen, die sich sind grundsätzlich skeptisch gegenüber für Fan-Mitbestimmung von Gewalt, Rassismus und politischem Verantwortungsträgern. Deshalb müssen könnte drei Hauptaufgaben Extremismus distanzieren. Ratschläge an den Verband von den Fans als glaubwürdig wahrgenommen werden übernehmen: &ORSCHUNGUND)NFORMATION (d.h. z.B. von einer Organisation kommen, &ANGRUPPEN /BSERVATORIUM die schon lange für und mit Fans arbeitet). %INBINDUNGVON&ANGRUPPENIN6EREINE Die Forschung hat ergeben, dass eine Dies wäre die Hauptaufgabe eines breite Palette an Fankulturen existiert, was Empfehlungen europäischen Netzwerkes für Fan- der allgemeinen Wahrnehmung von Fans Mitbestimmung, wie bei Supporters Direct als monolithischer Block widerspricht. 3CHLUSSFOLGERUNGEN in Grossbritannien. Dazu gehören Beratung, Dieses mangelnde Verständnis hat sich • Auch ausserhalb Grossbritanniens gibt wie Gruppen Verantwortung übernehmen in der Vergangenheit negativ auf das es Bedarf an Dienstleistungen wie denen und sich aktiv in der Führung ihres Vereins Verhältnis zwischen Fangruppen und von Supporters Direct. Ein europäisches engagieren können, die Bereitstellung von Behörden auswirkt. Der kontinuierliche Netzwerk für Fan-Mitbestimmung nach Modellen und Ratschlägen hinsichtlich der Austausch über die Entwicklung von dem Modell von Supporters Direct Nutzung der nationalen rechtlichen und Fangruppierungen bietet der UEFA und könnte für einen effizienteren Beitrag von fussballspezifischen Rahmenbedingungen. anderen die Möglichkeit, verlässliche Fans zur finanziellen Stabilität von Klubs Dabei gibt es kein Standardrezept für alle, Informationen zu erhalten. über die Gewährleistung einer guten sondern Unterstützung und Beratung Das Internet bietet eine bis dato Führung sorgen. müssten in Zusammenarbeit mit den ungekannte Fülle an Informationen • Fangruppierungen versuchen bereits, diese einzelnen Gruppen auf deren Bedürfnisse über Spieler und Spiele. Fans können mögliche Unterstützung zu nutzen, und zugeschnitten werden. Ein europäisches problemlos Spielergebnisse aus der 4. hoffen auf eine Ausweitung des Projektes. Netwerk für Fan-Mitbestimmung müsste Liga abrufen, doch Informationen über • Zudem könnte eine solche Bewegung dazu situationsabhängige Beratung hinsichtlich Eigentumsverhältnisse, Vereinsführung beitragen, die Standards in Fangruppen zu der verschiedenen Arten von Fan- und Fanszene sind häufig unauffindbar. erhöhen und diese zu Gesprächspartnern Mitbestimmung anbieten. Im vorliegenden Bericht wurden erstmals zu machen, was zunächst den Vereinen in entsprechende Fakten zusammengetragen. Europa und später auch Nationalverbänden &ANGRUPPENFÓHRUNGp!UFZEIGENVON und der UEFA zugute kommt. EMPFEHLENSWERTEN6ORGEHENSWEISEN Den vollständigen Bericht (auf Englisch) finden Sie • Ein europäisches Netzwerk für Fan- Viele Gruppierungen wollen noch nicht aktiv unter: WWWSUPPORTERS DIRECTORG

Mitbestimmung müsste ganz den in ihre Klubs eingebunden werden, sind sich Für weitere Informationen wenden Sie sich bitte Fangruppierungen, mit denen es jedoch des Wertes einer guten rechtlichen an Antonia Hagemann, Projektmanagerin zusammenarbeitet, gehören und diesen Struktur und Führung bewusst. Sie erkennen Supporters Direct Europe: ANTONIAHAGEMANN SUPPORTERS DIRECTORG %8%#54)6%35--!29 !p-AIN2EPORTS

"ELGIUM

Summary 22

General Introduction to Economic, Political and Cultural Environment 23

1. Structure of Belgian Football 23 1.1. The Government 24 1.2. Koninklijke Belgische Voetbal Bond (KBVB) – Union Royale Belge des Societes de Football-Association (URBSFA) – Royal Belgian Football Association and Profliga 25

2. Structure of Belgian Football Clubs – Ownership and Governance 26 2.1. Ownership Structures 26 2.2. Governance Structures 26 2.3. Financial Regulation – Licensing System 26 2.4. Financial Performance 26

3. Fan Culture 27 3.1. Supporters’ Clubs 27 3.2. Fan Initiatives 28 3.3. Open Stadium 29 3.4. Fan Coaching 29 3.5. National Supporters’ Groups 30 3.5.1. Supportersfederatie Profclubs / Federation of Supporters’ Clubs Prof (SFP) 30 3.5.2. The Fédération Nationale des Supporters du football – Nationaal Verbond van de Footballsupporters (National Federation of Football Supporters) – FNS 30 3.6. Dialogue with the Authorities 31

4. Suggestions 31 4.1. Image of Football Supporters 31 4.2. Open Stadium 31 4.3. Adequate Legal Structures of Supporters’ Groups 32 4.4. National Supporters’ Groups 32

Summary

 Belgian football is governed by the  The rules of the URBSFA/KBVB do stimulated to incorporate CSR in their daily URBSFA/KBVB, while the Profliga not provide for any particular ownership operation and are thus stimulated to take into represents the first division Jupiler Pro structure that must be adopted by its account issues related to all stakeholders, League (formerly Jupiler League). In contrast members. However, most professional e.g. the supporters. Furthermore, Open to other European countries, the Belgian football clubs have adopted the structure Stadium should become the driving force government, and in particular its Interior of non-profit organisations, ASSOCIATION for raising awareness about the social Ministry, takes a strong stand on both SANS BUT LUCRATIF (ASBL). While ASBLs do aspects of football throughout Belgium, supporter related issues and the general not have many obligations to fulfil they do, on the local as well as the national level. social aspects of football. The security most importantly, allow clubs to define and The SFP, Supportersfederatie Profclubs and prevention department of the Belgian modify their statutes. The Jupiler Pro League / Federation of Supporters’ Clubs Prof, Interior Ministry has incorporated a football will be reduced from 18 to 16 clubs from the representing supporters’ federations unit that deals with security and prevention 2009/10 season on and a joint Belgian-Dutch from 14 of the Jupiler Pro League clubs, of violence in Belgian football. Furthermore, league (BeNe Liga) has been proposed. promote the legal structure of non-profit this unit has issued a handbook that organisations for supporters’ federations, covers the matters surrounding increasing  Football supporters in Belgium are and hence advocates a more democratic solidarity in football and strengthening the currently not particularly involved in the and professional governance structure. The relationship between supporters, clubs and running of their clubs. However, our research main difficulties here are that many groups the community. Both the football association has found some examples of fan involvement often lack even basic democratic structures. and the Ministry have contact with that are worth mentioning in this context. The main challenges organised supporters supporters’ groups, while the government Some clubs, due to the financial incentive face are acquiring financial support for appears to lobby for their issues more than from Open Stadium, the government funded their day-to-day business and organising the football association. “football in the community” organisation, are the legal structure of supporters’ groups.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? "ELGIUM A Supporters Direct Europe could help is represented by an organisation called has resulted in numerous mergers over the promoting services and foster engagement the Profliga / Ligue Professionelle (formally last 40 years. In the 1958/59 season there by responsible fan groups. Liga Betaald Voetbal / Ligue de Football were 128 football clubs in the first four Rémunérée). There were 18 teams in the national league divisions7. About 40 years Jupiler League during the 2007/08 season, later more than half of these clubs had 1. Structure of Belgian Football and of these teams twelve clubs came from been involved in at least one merger, with Flanders, four from Wallonia, and two from more than one-third of those occurring Football is the most popular sport in the Brussels-Capital Region. Most football in the last ten years. However, evidence Belgium with cycling, being the second clubs have adopted the structure of non- shows that although football clubs merge most popular sport. The first football profit organisations, even though the rules mainly for financial reasons, their balance clubs emerged in the late 19th century supplied by the URBSFA/KBVB do not sheets do not necessarily improve as a and obtained sequential registration impose any particular ownership structure result. It is believed that political issues, numbers in accordance with their order on its members. Only five clubs have as well as financial reasons, play a major of registration with the Belgian Football the legal structure of limited companies, part in the mergers. On a small scale, local Association (Koninklijke Belgische Standard de Liège, Germinal Beerschot, authorities may find it easier to maintain a Voetbal Bond (KBVB)/Union Royale Belge Sporting du Pays de Charleroi in the first single ground rather than two, as it is they des Sociétés de Football-Association division, and KV Oostende and OH Leuven who mostly own the football grounds. On (URBSFA), URBSFA/KBVB). Hence, the in the second division. the wider scale, the country is divided into oldest football club and the first to be Mergers between football clubs is two large regions with different languages registered, Royal Antwerp FC, has the a characteristic occurrence in Belgium and national identities, and this seems to registration number 1. While football is football and the relatively low economic be more important than inter-club rivalry8. governed by the URBSFA/KBVB, the first power of Belgian football clubs, when There have been cases where many fans division, known as the Jupiler Pro League, compared to their European neighbours, have left the clubs in the event of a merger,

General Introduction to Economic, Political and Cultural Environment Belgium is home to about 10.5 million people and has a can establish a management committee. However, for private combined GDP of $378.9 billion. Brussels, the bilingual capital, companies the unitary structure of the board is mandatory. accommodates the headquarters of the European Union1 and The code also emphasises the importance of transparency, NATO. The country is governed by a federal parliamentary as obtained through the disclosure of certain documents, democracy under a constitutional monarchy, with ten provinces while non-profit associations are also subject to minimal legal that are spread across two large regions – the Dutch-speaking requirements regarding accounting and transparency4. region of Flanders in the north (58% of the population) and the Minority shareholders of a public company can file court French speaking region of Wallonia in the south (32% of the actions alleging mismanagement, if they hold at least 1% of the population). Politically, the tensions between the regions have voting rights. In private companies, minority shareholders must led to constitutional amendments in 1970, 1980, 1988, 1993 and hold at least 10% of the voting rights to file such an action, while 2001, which transformed Belgium into a federal state, and which minority shareholders of non-listed public companies have to now consists of Communities and Regions, and which grant base their requests on sufficient grounds, such as abuse by the them formal recognition and autonomy, with political power majority5. There are also special requirements set out for internal bound closely to the need for representation of the main cultural controls, risk management, and the responsibilities of directors, communities. Hence the public is confronted with four levels of auditors and others. power, the federal, regional, provincial and local level2. Each level In Belgium there is no guarantee that employees will receive of authority has a certain set of competences. representation on the board. However, the rules governing Belgium’s government changed on the 20th March 2008, European companies do provide employees with mandatory and the new appointment ended a nine-month dispute between consultation and optional board representation. Belgium is a the Flemish and Walloon parties which had caused a serious highly unionised country, with Belgium Trade Union affiliation political crisis. It was even speculated by international observers ranking amongst the highest in the world; in the private sector that against the backdrop of this crisis the 177-year-old state 54% of workers are members of a Trade Union. Belgian labour was in danger of separation. Political observers expected that unions hold positions on a wide range of political issues, extra tensions could arise over the following months, triggered like public finance, education, environmental protection and by Flemish demands for more influence in the regions and the women’s rights. ‘Belgium has an elaborate system of social opposition to these by French-speaking parties. As Belgium dialogue at all levels (intergraded, sectorial and company), and evolves from a centrally run state towards a confederal state, in the different socio-economic fields (economic policy, social tensions between the two communities will probably result in a policy, and occupational safety and health). Every two years, new reform of the institutions. Finally, in July, after only four months the social partners try to reach an intergraded agreement. In in office the Belgian government teetered on the brink of collapse. this agreement, measures about ‘social progress’ (wages, Belgium is one of the world’s largest trading nations, and its employment, training) are taken for active and non-active industry is mainly situated within the Flemish region in the north. workers. The intergraded agreement is valid for the country’s Companies must comply with the Belgian code of corporate entire private sector. A system of control mechanisms and governance, or otherwise explain their reasons for not doing inspection, including labour courts, enables the effective so3. Public companies are managed by a board of directors and implementation of agreements and regulatory systems. A similar have a unitary structure, although the shareholders’ meeting consultation is also found in the public sector6.

%8%#54)6%35--!29 "ELGIUM although there have also been successful football labour market in particular. Jean- its Interior Ministry, takes a strong stand mergers that were supported by the fans of Marc Bosman, who was a player in the on supporter related issues and the social all the clubs involved9. Jupiler League, wanted to change teams, aspects of football in general. The security The comparatively high minimum but his club did not agree with the transfer and prevention department of the Belgian wages that non-EU players receive in fee offered and refused to let him go. As a Interior Ministry has incorporated a unit Belgium is another characteristic of result Bosman sued for restraint of trade, for dealing with security and prevention Belgian football, which has led to the with the European Court of Justice ruling in of violence in Belgian football. The main Belgian league becoming a stepping- his favour13. The so called “Bosman ruling” governmental aims are to strengthen the stone for players from outside the EU, and is based on the decision concerning the relationship among supporters, clubs particularly from Africa. This situation is freedom of movement for workers and and communities, and to work closer with further aided by the country’s relatively lax the freedom of association, with its direct football fans. work permit regulations, which allow an EU effect on article 39 of the EC Treaty. Post- The funding of community projects passport to be obtained in just two years. Bosman professional football players seems to be the main challenge within This has resulted in the bigger European working in the EU can now move freely to the social environment of Belgian football. football clubs shopping for players within the highest bidding club when the term of Hence, the government is planning to Belgian football. Hence, other European contract with their present team expires14. propose that provisions for supporters’ clubs have formed beneficial links to Dejonghe has considered this new social projects are expressly incorporated Belgian football clubs, with the most scenario to be one of the main responsible into the licenses of first and second relevant partnerships existing between factors behind the decline of Belgian division clubs18. The football association Arsenal and Beveren10 and Manchester football, while other authors, like Kessenne, does not currently provide financial United and Antwerp, with Antwerp’s suggest this decline is instead the result of support for the community work run former coach coaching the second team poor management performances, which by Open Stadium or any independent of Manchester United from the 2008/09 have allowed a general rise in salaries even initiatives. However, implementing such season on. Also, several players now in though there have not been sufficiently obligations into the licence could secure the first squad of Manchester United once available funds15. the funding of community projects. The played in Antwerp. Additionally, further Many consider the competitiveness of proposal will be modelled on the fan foreign investment has been made in the Jupiler Pro League to be insufficient in projects run in Germany, overseen there by Standard de Liège, Lierse and La Louvière. Europe, thereby hindering the bigger clubs the KOS (+OORDINATIONSSTELLE&ANPROJEKTE), Since the early 1980’s, Belgian football in Belgium as a result. As participation in which are two-thirds funded by the public has experienced several episodes of the Champions league is important for the authorities and one third by the DFB match-fixing, with the most recent clubs, representatives from all first division ($EUTSCHER &U¶BALL "UND)19. In Belgium, occurring in late 200511. In February 2006 it clubs (2007/08) have agreed to reorganise a working group will be set-up, which will was announced that four clubs were being the league16. be chaired by the Interior Ministry and will investigated on suspicions of match-fixing, On 17 May 2008, the Belgian Football include fan representatives. focused on allegations against a Chinese Association (KBVB/URBSFA) decided to So far, the football association seems betting cartel of affecting the outcome reduce the number of clubs in the Eerste to disapprove of the idea of implementing of various football matches. Individual Klasse/Jupiler Pro League from 18 to 16 social obligations into the football clubs’ players and coaches were accused of from the 2009/10 season. The two bottom licenses. Rather than requiring clubs manipulation. A Chinese/Taiwanese sides will be automatically demoted while to engage with their community, the businessman allegedly bought stakes in the two above them will play in a promotion/ football association would prefer to wait several Belgian clubs with the intention of relegation play-off series against the for any decisions from UEFA regarding manipulating results in matches on which sides who finished second and third in the the implementation of corporate social he had placed bets, although initially Tweede Klasse, Belgium’s second division. responsibility into the UEFA club license20. the individual was found not guilty. The The winner of this competition will gain a Prior to the 2007 elections, the Interior judiciary has been dealing with the case top-flight berth, together with the second Minister met with football fans, the since the beginning of 2006. Against the division champions. The KBVB/URBSFA URBSFA /KBVB, and the press every six background of these events, the presidents also intends to have play-offs to decide weeks for open discussions. However, of Belgium’s professional football clubs who will participate in European football the everything was put on hold, including the have agreed to sign a charter that commits following season. However, the exact format meetings with fans, between the elections them to compliance with the regulations of the play-offs has not been agreed yet. in summer 2007 and February 2008, laid down by the football association, and Furthermore, there is a lobby for when the government was successfully forbids them from legally challenging any Belgium and the Netherlands to form a established. Nevertheless, the football of the 2005/06 season’s results. Other new league called the BeNe Liga, and the unit still has a close relationship to the measures have been established, but proposed competition would include the president of the Federation of Supporters’ these will undergo additional reinforcement best sides of each country. Although no Clubs of Professional Football Clubs by a working group set up by the Belgian details have been disclosed so far, the (3UPPORTERSFEDERATIE0ROFCLUBS (SFP)). Professional Football League12. The involvement in this new league of PSV Many Belgian football clubs seem to Belgian football association has said it will Eindhoven, Ajax, Feyenoord, Anderlecht, have no definite idea of who their fans rescind the licences of those clubs that are FC Brugge, and Standard de Liège would are, and as such they do not have much convicted, even though thus far it is only be likely17. data about them other than the names of players who have been sentenced. their season ticket holders, which often In 1995 Belgium was the setting for 1.1. The Government are not even distinguished by gender. As the most prominent change in European In contrast to other European countries, previously mentioned, the government football law, which affected the European the Belgian government, and in particular aims to improve the relationship between

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? "ELGIUM fans and the clubs by extensively WHICH OFTEN FRIGHTENS OFF OTHER POTENTIAL The professional league became an supporting community projects, although SUPPORTERSANDSPONSORS)FTHESUPPORTERS independent legal entity with the creation when the government conducted a survey ARE AFFORDED MORE PARTICIPATION THE CLUB of the Jupiler League in 1974, run by the to identify the fans who attended matches WILL GO IN ANOTHER DIRECTION AND IT WILL Profliga. The Jupiler Pro League, Belgium’s the clubs struggled to provide any data. TAKEONAMORESOCIALROLEASAMATTEROF first division, is the only fully professional The government has tried to bring all COURSE 3UPPORTERSl PARTICIPATION EXISTS football league in Belgium, and until the stakeholders together and has called for IN VARIOUS FORMS 2EGULAR CONSULTATION end of the 2008/09 season it will contain more solidarity amongst them through two WITH SUPPORTERSl REPRESENTATIVES IS THE 18 professional football clubs. At the end handbooks: one about fan coaching and MINIMUM CO MANAGEMENTBYSUPPORTERSl of each season, the lowest placed team is the other about football in the community. REPRESENTATIVESANDTHEHOLDINGOFSHARES directly relegated to the second division The Minister of Home Affairs has ISTHEACMEl22 and is replaced by the champions of the appealed for the development of ties second. Belgium’s second division, the between the fans, the community, and the The Belgian government takes a serious Belgian National Football League (NFL/ clubs in “a plea for more solidarity”, which approach to fan involvement and is keen NF), was created ten years earlier, in 1964, is contained in the 140 page handbook to maintain and improve its relationship and it contains professional and semi- called “Football in the Community”, due to with supporters. To ensure an ongoing professional or semi-amateur clubs. The be published in 2008. In the foreword the and productive dialogue with the SFP, and first three clubs of the NFL’s second division Minister says: especially with its president, the football and the 17th ranking team of the Jupiler Pro unit is looking into ways to partly fund the League play for promotion to, or the ability m4HE #OMMUNITY MODEL OFFERS CLUBS THE SFP president’s position. to stay in, the Jupiler Pro League. OPPORTUNITY TO BUILD A STRONGER AND MORE The Profliga represents the football POSITIVE IMAGE ! CLUB WHICH INVESTS IN 1.2. Koninklijke Belgische Voetbal clubs of the first division and it negotiates ITS STAKEHOLDERS AND BUSIES ITSELF WITH A Bond (KBVB)/Union Royale Belge des collective TV rights, along with other TRANSPARENTMANAGEMENT CANALSOCOUNTON Sociétés de Football-Association broadcasting and marketing contracts, GREATLOYALTYIFTHINGSSOMEWHATUNWIND! (URBSFA) – Royal Belgian Football where the clubs, who own their publicity CLUBWHICHEXPRESSESAPOSITIVEIMAGEISTHE Association and Profliga rights, consent to global commercialisation. PRIDEOFTHECITYTOWNORMUNICIPALAUTHORITY In 1970, the law on cultural autonomy of The Profliga is also responsible for !CLUBWITHASOCIALLYRESPONSIBLEIMAGECAN the regions was declared and national organising and managing the calendar for üNDSPONSORSMOREEASILY)NSHORT ASOCIAL federations had to split into separate the Jupiler Pro League. As the representative ENGAGEMENT HAS A SNOWBALL EFFECT GETS language based sections or lose public of the professional clubs in the first division, BENEüTSGOINGANDISAWIN WINSITUATIONFOR funding. At this time the Belgian Football the Profliga is involved in implementing the BOTHTHECLUBASWELLASSOCIETYn21 Association kept its status as an unitary objectives that are contained within the national federation23, therefore losing URBSFA/KBVB’s articles of association. The handbook addresses the clubs, all funding from the government. The However, if the professional league everyone involved in the running of clubs, Association is geographically structured wishes to implement any changes to the and other stakeholders, and urges them to with a federal head office and nine rules and regulations in governing Belgian take part in socially committed projects, provincial offices. football as a whole it needs to get 81% of with a general plea made for more solidarity The URBSFA/KBVB is an ASSOCIATION the votes at the URBSFA/KBVB AGM24. In at all levels. Best practice in other European SANS BUT LUCRATIF (ASBL) (non-profit other words, the professional league only countries is also outlined in the handbook, organisation), and it administrates football has a blocking minority of 19.85%, which with a recommendation for rendering a level in Belgium, including executive, policy, enables them to veto any proposals, while of solidarity between all stakeholders into and discipline and regulatory affairs, the clubs in the lower divisions have the the licence conditions, both at a Belgian as which in turn are administered by various majority of the votes in the AGM, which well as a European level. Supporters Direct committees and commissions. The allows them to veto any changes that could UK and the trust model are mentioned in the associations’ regulations are currently lead to more commercially orientated report as vehicles for improving the social reviewed and rewritten to make them policies in Belgian football. Hence, the role of clubs, through involving supporters easier to understand and update. The lower league clubs generally have a greater in decision-making processes. football association is also represented say than the bigger clubs, e.g. they have on the board of Open Stadium. There are a say in the distribution of the Profliga’s k7HERE THE CLUBS AND SOCIETY MEET EACH currently 2,000 football clubs and 800 TV money to the lower divisions. This is OTHER THEREISROOMFOREXCHANGE DIALOGUE indoor football clubs organised within in why the KBVB is called the “dictatorship ANDRECIPROCALENRICHMENT)TWILLBESELF the URBSFA/KBVB, which has more than of democracy”25 or the association of the EVIDENT THAT SUPPORTERS FORM A PART OF 400,000 members. lower leagues. THIS "ETWEEN THE SUPPORTERS THERE ARE ALSO PEOPLE WITH NETWORKS AND EXPERTISE The division of the votes in the General Meeting AND THEY ARE MOREOVER EXTREMELY LOYAL TO THEIRCLUB4HISHANDBOOKDESIRESTOBEA 6OTESIN!'- )NOF!'- PLATFORM FOR A STRONG CONTRIBUTION FROM First division (18 teams) 108 19.85 THE SUPPORTERS VIA 3UPPORTERS 4RUSTS Second division (18 teams) 72 13.24 3UPPORTERS 4RUSTS THAT HAVE A SAY IN THE Third division (32 teams) 64 11.76 üNANCIAL POLICYSOMETIMESBECAUSETHEY Fourth Division (64 teams) 64 11.76 THEMSELVESHOLDSHARES OFTHECLUBMAKEA Lower division (1790 teams) 236 43.39 DIFFERENCETOTHECLUBTHATISONTHEEDGEOF RUINATION ANDLESSENSTHEUNPREDICTABILITY 3OURCE+"6"IN$EJONGHE  P

%8%#54)6%35--!29 "ELGIUM 2. Structure of Belgian Football Clubs structured as SOCIÀTÀSANONYMES inform the Belgian football association Clubs – Ownership and have a very structural hierarchy; the about the identities of all investors, and Governance26 annual shareholders’ meeting approves members of the same family will no longer the accounts, while special shareholders’ be allowed to hold shares in two different 2.1. Ownership Structures meetings are called where amendments clubs. “Furthermore, any transfer money The URBSFA/KBVB rules do not provide to any of the statutes are concerned. collected by players’ agents will have to its members with any provisions that Shareholders are entitled to file for suit with be channelled through the Belgian football relate to the adoption of particular the courts where the auditor is considered association first. An additional clause is ownership structures. The clubs only ineffective, allowing them to be actively being included in players’ and coaches’ have to present their statutes and specify involved in the shareholders’ meeting. If the contracts; banning them from betting the legal personality of the club or, in the shareholders own 1 % of the voting rights, on matches they are involved in. Any absence thereof, confirm that the club is an or own shares worth at least €1.25 million, players, coaches or managers who notice ASSOCIATIONDEFAIT, or DEFACTO association they can file a suit against the directors on any unlawful activity (such as attempted in fact27. The ASSOCIATION DE FAIT has no behalf of the SOCIÀTÀ ANONYME. However, bribery, for example) are encouraged to tell legal basis and hence no legal personality. some shares are issued without voting an official specially designated to handle Most football clubs adopt the ASBL rights so that capital can be increased the enquiry”35. structure of a non-profit organisation. In without influencing the existing shareholder The License Commission principally these cases the URBSFA/KBVB provides structure. The clubs’ day-to-day business assesses the documentation that is best practice recommendations for the is run by a board of directors, which has to provided by clubs, and upon satisfiing itself club’s statutes28. Additionally, these clubs have at least three members32. regarding compliance will grant the licence. must not seek their own enrichment, but Otherwise, the appeal commission will ask they can conduct subsidiary activities 2.3. Financial Regulation – Licensing non-complying clubs to fulfil additional that accumulate profits, which in turn System requirements so that required standards can only be used for activities necessary Many first division clubs have faced serious are achieved36. The appeal commission will for retaining the association’s non-profit financial difficulties in the past, and some grant the license if the club has either an function29. Some clubs have taken the have even experienced bankruptcy. The ”austerity plan”, including a full statement form of a SOCIÀTÀ COMMERCIALE and have current licensing system was introduced of assets and liabilities approved by hence chosen the structure of the SOCIÀTÀ in 2002 in an environment of increasing the authorised court of justice, or a ANONYME30, which is based on a contract pressure from the federal government, and financing plan, which must include debt among people who agree to pay in a according to this new system clubs can only reduction measures. Furthermore, the specified amount of capital to the extent of be granted a licence if their accumulated Licence Commission can set additional which they are liable. Only five clubs take debts are not football related. However, requirements that accompany the the legal structure of limited companies, debts to other clubs, the league, players, licence, e.g. a full statement of assets and Standard de Liège, Germinal Beerschot, social authorities, or tax would lead to a liabilities for a longer period. The Licence Sporting du Pays de Charleroi in the first refusal of their licence application. Commission also has the following division, and KV Oostende and OH Leuven The Belgian football association, abilities: withdrawing the prohibition on in the second division. through the License Commission, is in incoming players, granting the license if charge of implementing the system33. The the club provides a bank guarantee, and 2.2. Governance Structures composition of its members was changed contacting the institutional creditors to In general, football clubs with an ASBL in response to the match-fixing scandal obtain all necessary information about any structure do not have many obligations of 2006, and it is now formed by external disputable debts. to fulfil. However, since 2004 the clubs experts. To obtain the license, each team All but two clubs have posted losses have been required to publish their annual of the first and second division have to over the 2006/07 season according to the reports. The clubs are also required to annually comply with the conditions financial data provided by the Profliga. have specifications within their statutes declared in article III/6 and III/7 of the However, for the 2008/2009 season UEFA with regards to, e.g., elections, method of URBSFA/KBVB statutes34. According to has provided licenses to 14 clubs in the nominations, the duties and powers held the licensing system, clubs must have a Jupiler Pro League, while the required by directors, and the powers held by the legal entity (although it does not provide for coaching license was not held by the shareholders’ meeting. Most importantly, any particular ownership structure that the coaches of two of the remaining clubs. defining the rules that outline the processes clubs must adopt), and they are required to Regarding the second division, eleven involved in modifying the statutes is give evidence of payments relating to, e.g. clubs have been granted a domestic required. Clubs with the ASBL structure players’ salaries, social security payments, license, which allows them to compete have two different types of members, taxes on wages, contributions to pension in the first and second division during the MEMBRES ASSOCIÀS and the MEMBRES funds of the professional football players, the 2008/2009 season. However, one ADHÀRENTS. ‘The MEMBRES ASSOCIÀS can and debts to the KBVB and other clubs. team that did not receive a license sued participate in shareholders’ meetings and However, as a result of several the URBSFA/KBVB for not signing the can make all decisions essential to the life scandals, the football authorities and compulsory document that allows them to of the association, including modifying the federal government defined an additional appeal in front of an arbitration court. basic contract constituting the ASBL. The set of controlling measures. From the MEMBRES ADHÀRENT are third parties who 2006/07 season all clubs in the first division 2.4. Financial Performance have a connection to the association; their have to undergo three financial audits, As previously mentioned, all but two clubs rights and obligations are set forth in the in March, June and October, compared have posted losses over the 2006/07 by-laws’.31 the previous situation of a single audit season according to the financial data in March. The clubs are now required to provided by the Profliga. As stated by

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? "ELGIUM Dejonghe, budgets are published by the clubs’ TV income from €36 million to €50- in the community” model, and it aims to media rather than being openly available37. 55 million per season. implement (a sense of) corporate social The total turnover of the Profliga grew responsibility into Belgian football clubs. from €106.6 million in 1999 to €146 There are currently 12 clubs who have million in 2005/06, of which the four 3. Fan Culture appointed community managers who biggest clubs generated €48 million of organise and administer community the latter: RSC Anderlecht, FC Brugge, Our research has found that football fan projects together with football supporters, RC Genk and Standard de Liège38. The culture generally does not seem to be an the clubs and any local partners. regular participation of FC Brugge in the important issue in Belgium; neither the clubs Champions League, and the additional nor the associations appear to be acquainted 3.1. Supporters’ Clubs broadcasting revenue over this time, can with those with whom they are dealing. Supporters’ clubs in Belgium can take explain the increase. The prices for season tickets went down the form of an ASBL or AASSOCIATIONSDE While the share of the total league noticeably in 1999, and average attendances FAIT49. They can also be grouped within budget held by the bigger clubs has rose from 7,500 - 8,000 in 1985-1999 to “federations” in the form of an ASBL50. been rising, many smaller teams in the around 9,700 in the 2004/05 season and over The supporters’ federations mostly have first division have been facing financial 10,000 in 2005/06. The attendees of four no influence over the organisation of the problems. The endogenous growth in clubs alone make up 50% of all matchday club or its decisions, even though the financial resources for the Belgian clubs attendances. Additionally, the number of football clubs officially recognise them. appears to be limited, and many clubs are season ticket holders in the first division If a supporters’ club adopts the struggling to obtain additional resources. went up from around 70,000 in 2000/02 to ASSOCIATIONS DE FAIT structure it would, Furthermore, the repeated match-fixing almost 100,000 in the 2006/07 season44. in principle, mean that the group has no scandals and tax frauds involving Belgian Mergers between rival football clubs legal personality, and therefore no rights clubs over the last three decades has have often been seen as takeovers rather or duties. Hence, such groups cannot caused the banks to be reluctant in granting than unions, and have hence caused a purchase assets or enter into legally binding additional loans to football clubs39. Most lot of opposition from fan groups, and in agreements. ‘The members of ASSOCIATIONS clubs of the first division have a turnover several cases the opposing supporters DE FAIT do not have a direct ownership between €2.5 and €6 million. have formed a new club45. The unused interest in its assets: the association itself Belgian revenue sources are split as names from the pre-merged clubs cannot is the owner. Therefore, if the football club follows: 58% in is merchandising and be reused for ten years, according to was one of these assets, for example, all catering, comprising more than half of their the Belgian FA46. Mergers between two the members would hold an undivided revenue source, as compared to the 10-17% clubs had ended many rivalries by 2000, interest in the club. The members would seen in the ‘big five’ European leagues40; and in these cases many fans simply left then be able to exercise their rights through ticketing provides 30%, and TV rights only their clubs. However, there have been this undivided interest. In cases where no provide 12% of their revenue, while the successful mergers that were supported managers are designated in the by-laws latter is the most dominant revenue source by the fans of all the clubs involved47. (ASSOCIATIONS DE FAIT can have [statutes]) for football clubs in the ‘big five’ European In the past, several Belgian professional the legal rules concerning MANDATS apply, leagues, except for the German Bundesliga football clubs, as well as the URBSFA and the members of ASSOCIATIONSDEFAIT will (when commercial and sponsorship revenue /KBVB, have drawn up supporters’ appoint a proxy to represent their undivided are combined)41. Several reasons may exist charters48. The supporters’ charters of share in the football club in question’51. for the low percentage of TV rights in the clubs mainly outline the responsibilities that The involvement of football supporters composition of Belgian clubs’ balance supporters have towards their clubs, and in in the running of their clubs is generally sheets, one may be Belgium’s division into particular they summarise the obligations limited to issues that arise from travel, two language regions, which in turn creates of supporters’ clubs. Conversely, clubs are entertainment and security. However, two media markets. responsible for guaranteeing a safe and certain groups do have some manner of Each region has its own broadcasting welcoming experience in the stadium. The influence in the wider decision-making stations, while pay-per-view and trade in national supporters’ charter also outlines process. One supporters’ federation worth internet and other media rights is alien to the responsibilities of supporters’ clubs, mentioning here is the &AMILLEDES2OUCHES Belgian football. Another main reason for while prioritising stadium security. (the Reds Family) of Standard de Liège. the low revenue obtained through TV rights In addition to the “#HARTE DE 3ÀCURITÀ could be the potential negative impact DE TOUTES LES ASSOCIATIONS DE SUPPORTERS” · Famille des Rouches (the Reds Family) of mergers on the clubs’ market value. (Security Charter of all supporters’ – Standard Liège Dejonghe argues that the market is simply associations), the “#HARTE 3OCIALE DE too small, suggesting that the number Ll52"3&!” (URBSFA/KBVB Social Charter) Standard de Liège fought off several take- of clubs should be decreased to 16, 14 promotes equality, social integration, and over attempts during the 1980s. In 1988 or even 12, and an international league anti-racism. The charters mainly focus the club adopted the structure of a limited with the Netherlands should be created42. on the behaviour and obligations held by company and in 1996 the club merged with However, Kesenne has stated that the bad supporters and supporters clubs, while FC Seraing, which was in serious financial management of Belgium football in general barely defining the responsibilities that difficulties. The club’s main investor is has jeopardised the clubs’ financial clubs have to their supporters. Furthermore, Robert Louis Dreyfus, CEO of Adidas, who success43. the charters suffer from a lack of credibility is also a member of the management board. However, it has been mentioned that amongst supporters as they were all drafted In the 2007/08 season, Standard won the the reduction in the number of its first without any input from them. Jupiler League for the first time in 25 years. division teams from 18 to 16 from the In contrast, Open Stadium is the Standard de Liège has had a 2009/10 season on could increase the Belgium variant of the so-called “football supporters’ federation, the &AMILLE DES

%8%#54)6%35--!29 "ELGIUM 2OUCHES, since April 2004. The club itself However, we did find several fan initiatives board has 33+1% voting rights on the promoted the launch of the supporters that are worth mentioning in the context management board, which gives them a federation, and furthermore granted of this study. The supporters of KV minority blocking share. However, so far them a role in the club by appointing a Mechelen helped to save their club in the supporters have not made use of it. “representative for supporter relations”, 2003 and have set-up a supporters’ board The supporters set up the club’s who supports the supporter groups. (3UPPORTERSRAAD), which takes a watchdog rules and regulations when the club was The federation adopted the legal role ensuring the financial stability of their relegated to the third division. At this time structure of an ASBL and is the only club. In contrast, supporters from RWD decisions had to be made quickly and supporters’ federation at Standard that is Molenbeek attempted to save their club democratic principles were not used in officially recognised by the club. Due to its and failed. Additionally, the ultra initiative setting-up either the governance structure structure as an ASBL, the group is required 4RIBUNES,IBRES was to set up to improve of the club or the representation of fans at to have rules within its statutes covering, dialogue with the football authorities, but the federation and the Supportersraad. e.g. elections, method of nominations, this ultimately failed as well. However, Mechelen is now back in the first the duties and power held by directors, division and the supporters’ federation and the powers held by the shareholders’ · KV Mechelen and the Supportersraad have decided that meeting. Most importantly, it is required the time has come to change the current to define the rules that relate to modifying The supporters of KV Mechelen managed structure of the club’s organs, fan groups, the statutes. However, the members of the to raise enough money, through various and legal structure. However, mediation Famille des Rouches management board initiatives, to save their club after it went into has become difficult due to the fact that are not appointed based on democratic liquidation in the 2002/03 season and was everyone involved was part of the initial principles and processes such as relegated from the first to the third division. group who helped save the club, and elections. Instead, directors are appointed The group was headed by a famous everybody knows the other parties. following a “natural” designation, which is Belgian TV personality, which helped to The average attendance at Mechelen based on the supporters they represent raise the group’s profile. Requests were is around 11,000, and the sale of matchday and their previous level of commitment. made to provide the supporters with a tickets accounts for 60% of the club’s However, the group aims to implement watchdog function over the management overall income. The annual budget is €6 a more democratic system, and an of the club, through active participation million (with between €800,000 and €1 internal meeting will be organised by the in the clubs’ decision-making processes. million coming from TV rights) and from management board of La Famille des Hence, in 2003 the supporters founded the this the club is planning on building a new Rouches to discuss the potential guidance 3UPPORTERSRAAD. stadium, as the current capacity does not that would be available from a Supporters This Supportersraad consists of meet the demand. One of the threats they Direct Europe in relation to this goal. people from each faction of the supporter face are takeover bids; in 2005 English The federation’s most obvious base: representatives of the supporters’ investors wanted to buy parts of the club, characteristic is the wide range of federation, the supporters’ clubs and but the directors and the Supportersraad stakeholders that it speaks for. The Famille independent supporters who are not succeeded in unanimously blocking the des Rouches represents supporters’ connected to a supporters club. One-third offer by implementing a set of criteria in associations from the Walloon and Flemish of the club’s management board consists of the club’s statutes which made a potential communities, Fan Coaching projects, members provided by the Supportersraad. take-over unattractive. and ultra groups. The Chief Executive of Each member has to fulfil various tasks, The overall aim of the Supportersraad Standard de Liège and members of the which range between legal, financial and is to preserve the club’s non-profit management board are also members management advice, as they perform structure by improving its own, and also of the Famille des Rouches because a watchdog role for ensuring the club’s the club’s, ownership and governance of this wide range of representatives, financial stability. Everyone can apply for structure. Their particular aims are the communication between the supporters a seat on the council, but the application increase of democracy, the election of an and the management board of the club is process, and the actual appointment of independent director for everyday business considered to be very effective. members, is based on invitations from the onto the management board, and the The federation’s main goals are to define board and is therefore not democratic. professionalisation of the club’s structure. the club’s social policies, to help organise Nevertheless, the majority of fans accept Additionally, the Supportersraad seeks the supporters and to generate funding for the Supportersraad. to improve communication with the fans their activities. The group is also involved in The Supportersraad’s main aim is and generally increase the membership ticket pricing and organises travel to away to relay information in two directions: within fan clubs, which it intends to do by games. Due to the relationship between the they inform the supporters about the developing close relationships with the Famille des Rouches and the management management board and vice versa. Each community. Furthermore, Supporters board of the club, many Belgian football year two meetings are held where the Direct UK has been asked to advise the supporters consider it to be the most supporters, the Supportersraad, and the group on these issues52. influential supporters’ federation in Belgian management board meet to exchange football. The Famille des Rouges is also information and ask questions. The · RWD Molenbeek managing the Open Stadium projects of Supportersraad also sends out surveys Standard de Liège. every year, which ask the fans for their RWD Molenbeek was another club that opinions on various issues. The 2008 experienced financial trouble around 3.2. Fan Initiatives survey will ask the fans if they would the same time, although this club finally Belgian football fans usually do not have prefer their club’s structure to be that disappeared in August 2002. In contrast much of an influence on the decision- of a members’ association, similar to to the initiatives at Mechelen, all the fans’ making processes within their clubs. that seen in Barcelona. The supporters’ attempts at raising sufficient funds to save

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? "ELGIUM Molenbeek failed due to various factors. Open Stadium became an independent 3.4. Fan Coaching In September 2002, around a month after non-profit organisation (ASBL) in April 2007 After the Heysel stadium disaster at Molenbeek went into administration, so that it could extend its help in setting up the European Cup Final in 1986, the Strombeek, a small second division club community projects at football clubs. Catholic University of Leuven developed from outside of Brussels, moved into A multi-disciplinary jury decides how to a dual integration model that focussed Molenbeek’s vacant stadium. Molenbeek’s allocate resources, and this jury includes a on educational work with young football directors were not involved in the move. representative from the Interior Ministry’s supporters who were at a high risk of social The following season (2003-2004) KFC football unit and the SFP. The outcome of exclusion. This programme was initiated in Strombeek changed their name into the the community projects, or the effective Antwerp during 1988, and in Liège during present-day FC Brussels. value that they provide to the clubs, is 1990, by the Interior Ministry in cooperation Most of the RWD Molenbeek’s old fans assessed by the clubs’ obligation to inform with the &ONDATION 2OI "AUDOUIN60. It are now following FC Brussels, while others Open Stadium about those projects. In is considered as OFFENSIVE PREVENTION re-created a new RWD Molenbeek that addition, Open Stadium monitors the in football61, compared to DEFENSIVE started in the eighth division, the lowest implementation twice a year. The clubs PREVENTION, such as the security measures league of the Belgian football pyramid. The also have to consent to possible accounts established in the LOIFOOTBALL (football act). club currently plays in the seventh division, audits by a business auditor. The programme’s social workers are paid is close to relegation and also lacks a Educational, social and sporting by the city council and have the status of strong fan base. elements are present in all of the 12 municipal workers. community projects. The projects are often Ten fan coaching projects, which were · Tribunes Libres carried out by co-operating stakeholders, situated all over the country, existed during as well as by 12 community managers who the EURO 2000, but nowadays only two The initiative 4RIBUNES ,IBRES (Free regularly convene for network meetings are still operating in Charleroi and Liège. Stands) was launched in 2005 by and are responsible for managing the In some cases the responsibility held by Belgian Ultra groups, who were facing a social actions within their clubs54. Fan Coaches preventing violent incidents period of restrictive conditions after the The community projects, for example, was transferred to the police, while other implementation of the act against spectator promote education-integration through projects ended due to a general lack of violence, called the Football Act (of Belgian monthly matches between youth and other confidence among the supporters62. football)53. In a similar manner to the “5NION teams and promote social responsibility New fan coaching strategies that match CONTRELARÀPRESSION”, which was launched through providing emotional support for the current needs of Belgian football by French Ultra groups in 2003, the Belgian children in hospitals55. Another project supporters are currently being discussed. Ultra groups were campaigning against focuses on the ethnic and cultural diversity The fan coaching programme is based on abusive police repression. in the community and provides internship four main pillars63: The aim was to organise a dialogue with opportunities, the use of the stadium the football authorities to discuss issues infrastructure for community initiatives, as 1. 0REVENTIVE SUPERVISION and PHYSICAL like police repression, ticket prices (e.g. well as having launched a youth academy56. ATTENDANCE OF HARD CORE SUPPORTERS by away-tickets between €8 and €12), stadia Other projects, to mention just a few, youth and social workers at all matches. regulations by the Interior Ministry, and the tackle racism among other initiatives57, or The objective is to guarantee institutional influence of broadcasters on the match- have promoted the professionalisation of representation within the “side” and to set day calendar. community management by developing a up a communication channel between the Tribunes Libres even wanted to set up handbook for community work at football supporters and the authorities (i.e. by law an umbrella organisation, with more than clubs58. and order forces, and club managers). The ten clubs wishing to join from both the Open Stadium is funded by the presence of fan coaches induces a sort of Flemish and Walloon territories. However, government (around €350,000) and is informal social control that evokes positive the Ultras’ philosophy of independence, sponsored by private companies like Coca- behaviour in supporters. along with other issues that collided with Cola and Start People. A maximum of 80% the Ultra mentality, made it difficult for of the total cost of the project is repaid. 2. 0EDAGOGICAL AND SPORTING ACTIVITIES. them to become more active in the overall However, as the new government of The aims here are to offer an alternative decision-making processes within football, Belgium took seven months to appoint, to inactivity and provide socialisation, and the initiative eventually died out. the future of Open Stadium was hanging to build a confident relationship with the in the balance and future budgets have not target group, but also to work as a social- 3.3. Open Stadium received accreditation yet. integration and development vehicle for Open Stadium is the Belgium variant of The Organising Committee considers young people. the socalled “football in the community” this initiative to be the social pillar behind model, which is known in the UK and the FIFA World Cup 2018 bid, but nothing 3. 4HE&AN(OMEis located on the stadium the Netherlands among other countries, has been agreed so far concerning the site and welcomes supporters on weekday and aims to implement corporate social involvement of Open Stadium. Overall, evenings and on home match days. It is seen responsibility within Belgian football clubs. Open Stadium aims to become a brand as an alternative to neighbourhoods or bars, The organisation was set up in 2006 by the for football in the community, gathering which may be conducive to crime, and allows government, and it is based on four pillars: knowledge and experience from other young people to enjoy their group life under economic, social, environmental and European groups, including Supporters social-educational supervision. Meetings participation. The non-profit organisation Direct, and sharing it with Belgian clubs organised between the young people and promotes the social aspects of football to compel more of them into assuming a the club managers, coaches or players aim to by encouraging a dialogue with all social role, as being a win-win59. give the supporters a sense of responsibility stakeholders through appropriate projects. towards their club, and vice versa.

%8%#54)6%35--!29 "ELGIUM 4. 3OCIALREINTEGRATION. Social assistance is the group is currently working on a of Open Stadium, where they decide, available to all supporters. Social workers brochure for their members, which will together with a representative from the help young people to normalise their give legal and practical advice pertaining Interior Ministry and the Open Stadium situation and, in some occasions, they act to club statutes, legislation, volunteers, management (observer status), which as intermediaries for the competent social risk and legal provisions concerning community projects should be funded in institutions (social assistance centre, liability and organised trips. They were the future. The group is also in contact with national employment institution, police or also working on a directory for their the football association and league, but judicial authorities), helping to administer members, which will include information it notes that it will take time to establish a alternative imprisonment measures on and tips on tackling racism and organising constructive dialogue with these bodies. young offenders. fundraising activities65. So far the group However, the group evaluates the standard have attempted to abolish the compulsory of away stadiums and it wants to present 3.5. National Supporters’ Groups security card, which fans are required to the findings from this assessment to the Belgium has two nationally organised hold if they want to enter the stadia, by league association, and from this the supporters’ groups, of which only the offering advice to the Interior Minister, who relationship is appearing to improve. &ÀDÀRATION .ATIONALE DES 3UPPORTERS will make the final decision on the matter. The SFP is currently facing two main DU FOOTBALL  .ATIONAAL 6ERBOND VAN DE The group has also had some influence challenges: acquiring sufficient financial &OOTBALLSUPPORTERS (National Federation in meetings with the ministry where anti- support for their day-to-day business of Football Supporters – FNS) receives racism matters were concerned. and deciding on the best manner with official recognition from the football The members’ general meeting is the which to organise the legal structure of association, while the league association superior decision-making body and the their members. The group’s only funding recognises the 3UPPORTERSFEDERATIE organisation’s democratic backbone. is from membership fees. However, SFP 0ROFCLUBS / Federation of Supporters’ It meets every two to three months to promotes the legal structure of non-profit Clubs Prof (SFP) as well. The football discuss problems, exchange information organisations for supporters’ federations, association have been reluctant to and to define their stance on certain and hence advocates a more democratic recognise the SFP in the past as they have matters for the government. The general and professional governance structure. The considered them as not representative meeting elects the board of directors for a main difficulties here are that many groups enough, in particular of Walloon football term of four years, and they in turn appoint lack even basic democratic structures, clubs. However, the group represents the executive board and make decisions and the leaders of such groups are often supporters clubs of almost all 18 first on general policies. The board of directors appointed by the football clubs and division clubs. has seven members who are supported consequently lack sufficient fan support66. A Supporters Direct Europe could help the SFP to identify adequate funding for Group Objectives the president of the group and could also assist in promoting the importance of 3&0 Represents 14 out of 18 clubs in the first division. Main objectives focus on security, ticket prices, the matchday calendar, racism, professional structures for supporters’ disability, and the general involvement of all stakeholders. groups if they desire more influence in their club’s decision making processes. Represents 52 supporters’ federations. Tackles violence in and &.3 The group is also planning a study trip to outside stadia, organises trips to sporting events, and promotes and England so that they can meet Supporters encourages relationships among their members. Direct and discuss these issues. 2ED$EVILS Small group of supporters in the Walloon part of Belgium. They have 64 +OP the ambition to be the official supporters’ group of the National Team. 3.5.2. The Fédération National des The group is not officially recognised by the football association. Supporters du football / Nationaal Verbond van de Footballsupporters by three experts in fan coaching, legal and (National Federation of Football 3.5.1. Supportersfederatie Profclubs/ translation issues. The board of directors Supporters) – FNS Federation of Supporters’ Clubs Prof meets every six weeks and all mandates The FNS was formed in 1957, but was – SFP are performed on a voluntary basis. only officially recognised by the URBSFA/ The SFP is a representative body, covering According to their president, the KBVB in the early 80s. The group is supporters’ federations from 14 of the supporters’ clubs of first division football structured as a non-profit organisation Jupiler Pro League clubs and claiming to clubs all experience similar challenges, and, in accordance with its legal status, represent some 160,000 supporters. The but co-operation between the groups is led by a management body (#ONSEIL SFP is a non-profit organisation and has runs smoothly and often the groups assist DlADMINISTRATION) and the general meeting. democratic structures that are bound to its each other on issues, e.g. questions In 1993, the group’s membership reached statutes. The groups’ main objectives focus concerning members’ contracts or 52 supporters’ federations, each of whom on security, ticket prices, the matchday complaints about trips. pays a membership fee of €150. Many calendar, racism and disability. Their motto The SFP has close contact with other officials of the group have been established is to include all stakeholders effectively in groups and organisations in Belgian in their posts for over 20 years. decision-making processes at the club. football. They are in regular contact with The FNS aims to represent their As seen in relatively new national the Interior Ministry and its football unit, members on the national level. They tackle supporters’ groups in other countries, in with Intro (a working group on football violence in and outside stadia, organise the beginning their focus lay on growing and people with disabilities), and with the trips to sporting events, and promote their membership, rather than establishing Centre for Equality of Opportunity and and stimulate relationships among an agenda and a list of actions. However, Racism. The SFP has a seat on the jury their members. For more than 40 years

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? "ELGIUM the group has also been organising an the money and then handing it over to their The Open Stadium projects should be run annual dinner party, where every year five club. The &AMILLEDES2OUCHES at Standard more extensively to spread understanding supporters’ groups are awarded with a also has an influence in the decision- of the social importance of sport and the medal to recognise their achievements. making processes at their club. diversity of fan culture. Ideas relating to The FNS is the only national supporters’ However, these examples seem to be the democratisation of football via fan federation that is officially recognised by exceptions and so far there have been no ownership could be promoted through the football association. The URBSFA/ other imitators in Belgium, especially where these projects. KBVB has a closer relationship to the the initiative at Mechelen is concerned. In FNS than the SFP, although they criticise general, fan groups simply do not have any 4.2. Open Stadium the FNS’s dated approach to football and strategies or follow particular ownership We believe that Open Stadium could lack of constructive contribution where and governance models, and often they become the driving force for raising developing the game is concerned. The do not have a legal structure either. The awareness about the social aspects URBSFA/KBVB encourages the FNS to be SFP plans to help supporters’ clubs in of football throughout Belgium, on the more involved in fan relevant issues and the adoption of legal structures, and it is local as well as the national level. Open to take a more pro-active approach. They lobbying for the rights of fan groups on a Stadium would be able to improve the also propose that the FNS should set up a national level, while helping to increase image of football fans in Belgium through national supporters’ organisation for the their influence on the club level. However, its community projects and it would help Belgian national team, incorporating it within the organisation is struggling financially to reduce violence within the stadia. To their existing organisation. Furthermore, the and is currently seeking funding. achieve this, Open Stadium would have to football association offered the allocation of The Belgian government takes a develop more national and local projects funds for this project. The FNS has agreed progressive approach with respect to the with social value, executing them in to present a business plan for such an support of football fan culture, which is cooperation with the clubs. Open Stadium organisation, but so far nothing has been in contrast to the other countries we have would have to become a consultancy officially introduced. examined. Not only does the government to satisfactorily organise community finance Open Stadium, but it is also projects as this would allow them to 3.6. Dialogue with the Authorities responsible for the Interior Minister’s latest identify and implement measures of best There are no other official links between publication, the handbook on football in practice, in cooperation with national and the football authorities and the supporters. the community, which supports the social local partners, with regard to corporate However, the authorities consider the SFP phenomenon of fan culture and actively social responsibility. as the most active national fan group in involved supporters. We believe that all first and second Belgium. The Minister of Home Affairs Our research shows that organised division clubs should be guaranteed used to meet fan groups on a regular supporters’ culture in Belgium is currently community managers, who would basis, but these meetings have been put in its infancy. The supporters are generally supervise the community work of the on hold since the elections in 2007. So far not interested in fan ownership or any clubs. This would ensure a certain no regular formal meetings have been set active involvement in the running of their standard of community work area-wide, up between the football unit of the Interior clubs, with the exceptions being two club- while helping supporters to strengthen Ministry and the president of the SFP, based supporters’ groups, at Mechelen the bonds between their club and their although they are in informal contact with and the SFP, the latter of which have asked community. The projects would have to each other. Supporters Direct UK for support. be supported by both the authorities and The URBSFA/KBVB is represented on local (social and corporate) partners to the board of Open Stadium and hence has 4.1. Image of Football Supporters create a sufficiently balanced public- informal contact with the president of the Irrespective of football’s popularity, private-football partnership for the general SFP, who is also on the board. match-going fans generally have a very activities and function of Open Stadium. one-dimensional image in Belgium. Both Open Stadium could help supporters’ the authorities and the communities often groups in Belgium by improving both their 4. Suggestions see them as a violent and disorganised. reputation and profile through helping Focusing on changing this current image them to be active in their communities. The In principle, fans are not involved in any would be a crucial step for fans, and they activities, although good in themselves, may decision-making processes within Belgian would have to do this to be taken seriously also lead to an increased membership and football clubs. There is no general or formal in any of their attempts at gaining more therefore revenue. More importantly, this contact between the clubs and their fan influence. As we mentioned earlier, there is would also give the groups credibility with bases that is worth mentioning, but some no single fan culture and the identification key stakeholders, such as the local authority. clubs do have informal meetings with their of the non-violent fans, and the subsequent Supporters are sometimes regarded supporters to discuss various issues and promotion of their positive characteristics, with a degree of suspicion or distrust by some groups do have a certain amount of would involve observing the fan movement the communities that surround a football influence within their clubs. Nevertheless, more closely. club, which means a moral case can also at KV Mechelen the supporters have raised Both Open Stadium and the be made as this negative impact could enough money to save their club, they have government are helping to acknowledge be addressed by the supporters’ groups set up a supporters’ board, and they also fan culture as a social phenomenon and providing some public benefit through now have a blocking minority of 33.3% on they are urging more clubs to assume community activities. Supporters are a the management board. The supporters their social role within the community, key stakeholder of football clubs and they at Mechelen, in contrast to many other improving, in particular, the perception could provide an important and valuable initiatives, wanted to be involved in the and understanding of fan culture and the link with the communities that the clubs running of their club beyond just raising social aspects of sport among teenagers. affect. Furthermore, it can use the kudos

%8%#54)6%35--!29 "ELGIUM associated with being a football club to supporters’ club could participate in the the football association. develop activities that meet local needs. club’s decision-making processes via the The SFP wants to help their members Open Stadium would have to secure shareholders meeting. If the supporters’ to gain more influence in their clubs, sufficient funding to convert these clubs only become a MEMBRE ADHÀRENT which it does through endorsing suggestions into action, thereby allowing they would have less influence, as the professional structures and promoting a them to take corporate social responsibility statutes of the football club can define national agenda. in Belgian football clubs to a higher level. members’ rights and obligations. The group is fairly young and is mainly The government currently funds the The supporters’ group can become concerned with supporters’ club issues organisation, but we suggest improving a shareholder if the football club is a such as travel, ticketing and anti-racism. their uncertain financial situation by SOCIÀTÀ ANONYME. If the group holds 1% Hence, we believe that the SFP as a whole providing additional financial support from of the votes or represents at least €1.25 could also benefit from guidance by the the URBSFA/KBVB and other partners. million of the capital, in the event of Football Supporters International (FSI) apparent mismanagement it can even file group, where developing an influential and 4.3. Adequate Legal Structures of a shareholders suit and demand that an representative voice within the Belgian Supporters’ Groups auditor reviews the accounts69. football structures is concerned, while The SFP advises their members, the Hypothetically speaking, if the group a Supporters Direct Europe could help supporters’ federations of the first division were a SOCIÀTÀ COOPÀRATIVE, it would SFP’s members to develop ownership clubs, that influence in the decision making be recommended for the supporters’ and governance structures, and advising processes in their clubs can be increased group to become a member, ‘whose on ways forward using national, corporate by adopting a legal personality. The Swiss investment can be variable, provided, and football governance frameworks. Institute of Comparative Law suggests however, that the by-laws so allow. This It seems that many Belgian football that supporters’ groups should adopt option permits supporters’ clubs to clubs have no definite idea of who they the structure of non-profit organisations, participate in the shareholders’ meeting are actually dealing with in terms of or ASBLs67. Such a structure would give and to vote on decisions, unless otherwise supporters and fans. They do not have them a legal personality that would follow provided in the by-laws, on a one-share, much data about their fans other than democratic principles and be genuinely one-vote basis’70. the names of their season ticket holders, independent from the club. which often do not even include any Supporters’ groups that are structured 4.4. National Supporters’ Groups distinction of gender. The SFP and their as ASBLs could go even further and The SFP is the group that has contact with organised members could help clubs and become a MEMBRE ASSOCIÀ (member) the football unit in the Interior Ministry stakeholders to understand the football of their club, since the law allows a legal and the league association. However, the environment better, which would be a win- entity to fill such a role68. This way the group is still not officially recognised by win situation for everyone.

1 European administrations and institutions in Brussels: European associations, 2006, http://www.footbel.com/documents/DE%20KBVB/ Commission, Council of the European Union, extraordinary and UEFA%20Direct%20EN/Page17-from-415233.pdf. committee sessions of the European Parliament. 13 Union Royal Belges des Sociétés de Football Association ASBL & others v. 2 For more information about the dividing up of competences, see http:// Jean-Marc Bosman; Case C-415/93, ECR I-4921. www.dekamer.be/kvvcr/pdf_sections/pri/fiche/05E.pdf. 14 For more detailed information about the Bosman case and its implications, 3 Corporate Governance Committee,’ The Belgian Code on Corporate see McArdle, D., From Boot Money to Bosman: Football, Society and Governance’, 9 December 2004, http://www.corporategovernance the Law, 2000, pp 31-58; Morris, S. Morrow and P. Spink,’EC Law and committee.be/library/documents/final%20code/CorpoGov_UK.pdf. Professional Football: Bosman and its implications’, Modern Law review, 4 With the introduction of new fiscal laws for non-profit organisations in vol. 59, no. 6, pp. 893-902. 2005, non-profit clubs have to publish their annual accounts. 15 Comparing management performances of Belgian football clubs, p.4, 5 www.practicallaw.com/A45456. December 2007. Critical about this suggestion, see Kesenne, S.,’Belgian 6 http://eng.acv-online.be/Belgium/Trade_unions/Belgium_tarde_unions. Football – A Comment’, Journal of Sports Economics, Vol. 8 No. 6, asp. December 2007, 670-676; Dejonghe, T., ‘The Evolution of Belgian Football 7 Duke, V., Renson, R.,’From Factions to Fusions?, The Rise and Fall of Two- over the last Decades’, UEFA/IASE Seminar, ‘The economic impact of UEFA Club Rivalries in Belgian Football’, International Review for the Sociology Champions League national football economics’, Nyon, 2006, pp. 1-45. of Sport 38/1, 2003, 61-77, p. 71-72. 16 http://www.uefa.com/footballeurope/news/kind=2/newsid=673448. 8 For more detailed information about mergers of Belgian football clubs, see html?cid=rssfeed&att=index Duke and Renson, 2003. 17 Soccer Investor, 28 April 2008; The introduction of the BeNe league was 9 For more information about the identification of supporters with their club, also suggested by Dejoghe, 2006, p. 37. see Breda, J. and Mortelmans, D., ‘”Rood-witte honden en Kielse ratten” 18 Interview with Heidi Deridder, Attaché Football Unit, Security and De identificatie van supporters met hun club, Een geografische studie naar Prevention FPS Interior, Brussels, 10 April 2008. de breuklijnen bij Antwerp FC en Germinal Beerschot’, University Antwerp, 19 http://www.kos-fanprojekte.info/. Faculteit Politieke en Sociale Wetenschappen Academiejaar 2006 – 2007. 20 Interview with Filip van Doorslaer, Head of Marketing and Commercial, 10 Arsenal was found not guilty of breach ownership regulations after URBSFA /KBVB, Brussels, 10 April 2008. a FIFA enquiry, http://news.bbc.co.uk/sport1/hi/football/teams/a/ 21 Best Practice, Prevention of Football Violence, Part 2: “Football in the arsenal/5131002.stm. Community”, a Plea for more Solidarity’, A publication from the Federal 11 Halpin, P., ‘Match fixing a history’, The Observer, 8 January 2006. Public Service of Home Affairs, General Directorate for Security and 12 Gomez, P., ‘A special meeting for a special matter’, News from members Prevention Policy, Football cell, version April 2008, p. 1.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? "ELGIUM

22 ’Best Practice, Prevention of Football Violence, Part 2: “Football in the 52 Interview with Luc Houman, President of the Suportersraad and Stefaan Community”, a Plea for more Solidarity, 2008, p. 44. Leroux, President of the Supporters Federation and member of the 23 If the football association would have split up in regional associations, they Supportersraad, Mechelen, 9 April 2008. would have received government funding. 53 FC Brussels (Brussels Power), KVC Westerlo (Westel Die Hards), KAA 24 KBVB , 2004 : article I/17;I/23. Gent, Kv Oostende (Ultras Kustboys), SV Roeselare (Roslar Army), Union 25 Dejonghe, 2006, p. 4. (Bhoys), Sp. Lokeren (Jong en Fanatiek Lokeren), Sv Zulte Waregem 26 For the analysis of ownership and governance structures of Belgian (Old Mills), KSK Lierse (Yellow Black Army), Kv Kortrijk (Red Lions 19), football clubs and the most adequate legal structures for supporters’ Cercle Brugge (Ultras Bryggja), Krc Genk (Coal Boys), Krc Genk (Drughi), groups, we have made extensive use of the Swiss Institute of Waasland (Wase Wolven), Tienen (Sugarboys), Kv Mechelen (Malinwa Comparative Law, ‘Comparative Study of the Legal Structures of Catholics), Sint-Truiden (Sector-L), Charleroi (Storm Ultras) and Mouscron Football Clubs and Supporters’ Organisations in 45 Jurisdictions’, (Rem Fanatics). Volume I, 2008, pp. 1-367. 54 Antwerpen - Germinal Beerschot, Antwerpen - Royal Antwerp Football 27 Swiss Institute of Comparative Law, 2008, p. 92. Club, Brugge -Club Brugge K.V., Charleroi - Royal Charleroi Sporting 28 http://www.footbel.com/nl/clubs_spelers/clubs/jurisdictie/vzw__statuten. Club, Charleroi - Royal Charleroi Sporting Club, Genk - KRC Genk, html. Gent - KAA Gent, Leuven - Oud-Heverlee Leuven, Luik - Standard de 29 Swiss Institute of Comparative Law, 2008, p. 92-93. Liège, Mechelen - YR KV Mechelen (samen met Racing Mechelen), 30 Standard de Liège and Germinal Beershot. Oostende - KV Oostende, Roeselare - KSV Roeselare, Sint-Niklaas 31 Swiss Institute of Comparative Law, 2008, p. 93; Due to a lack of clarity we - KV Red Star Waasland; For detailed information about the individual cannot be more precise on who these members actually are. projects, go to http://www.socialeconomy.be/Open%20Stadion/NL/ 32 For detailed information about the legal structure of football clubs in overzicht%20projecten.htm. Belgium, see Swiss Institute of Comparative Law, 2008, p. 93; also, 55 Luik - Standard de Liège, Project “Foot Citoyen/ Voetbal Burgers”. Dejonghe, 2006, p. 8. 56 Antwerpen - Germinal Beerschot, Project “Downtown”, http://www. 33 Article I/ 3 Reglament Belgian FA. germinalbeerschotdowntown.be/. 34 http://www.dhnet.be/sports/football/article/206478/licences-chomage- 57 Brugge -Club Brugge K.V., Project “Allemoale Thope”, http://www. technique-pour-la-commission-d-appel.html. clubbrugge.be/club/nl/index.php?a=sociaal. 35 Gomez, 2006. 58 Genk - KRC Genk, Project “KRC Genk laat jou scoren!”, http://www. 36 Their legal regime it is established in Article I/4 Compétences et procédures. krcgenk.be/nl/club/community 37 Dejonghe, T. and Vandeweghe, H.,’Belgian Football: The Financial Crisis’, 59 Interview with Guido Poppelier, Open Stadion-manager, Ghent, 11 April 2004, pp. 1-20, p. 11, The Rimini Group, http://www.imperial.ac.uk/business/ 2008. dynamic/other/RiminiGroup/report120304/Reports/BELGIUM.doc. 60 The Liege project is jointly supervised by the City of Liege and Fan 38 Dejonghe, 2006, p. 8 coaching ASBL, whose head office is located in the Department of 39 with the exception of SC Anderlecht stadium was rebuilt (total cost: €40m) Criminology, University of Liege. on loans by the then General Bank (now Fortis NV) and sponsor of the 61 Comeron, M., Socioprevention through Social and Pedagogical Coaching, team. Eurofan Book , 2006, pp. 83-85, p 85. 40 Deloitte, Annual Report of Football Finance, May 2008, p. 14. 62 Telephone interviews with Federic Paulus and Bertrand Fincoeur and 41 Dejonghe and Vandeweghe, 2004, p. 11; Deloitte 2008, p. 14. Salomon Aktan, Fan Coaches of Liege, April-2008. 42 Critical about this suggestion, see Kesenne, 2007. 63 Comeron 2006, p85. 43 Kesenne, 2007, p. 672; Kesenne, S.,’Comparing management 64 As this study observes the relationship between supporters groups and performances of Belgian Football clubs, Research Paper 2007-028, their clubs, a closer observation of the national supporters group of the University of Antwerp, Faculty of Applied Economics, December 2008, pp. national team is obsolete. 1-12. 65 The dossier is supported by the King Baudouin Foundation. 44 Numbers provided by the Profliga. 66 Interview with Dirk Vos, President SFP, Gent, 11 April 2008. 45 Lyra TSV (1972), FC Belgica (1974), Hasselt Vlug en Vrij (1965), Oostendse 67 Swiss Institute of Comparative Law, 2008, p. 93. Voetbalgemeenschap (1982), Racing Club Tienen (1991), FC Winterslag 88 68 Swiss Institute of Comparative Law, 2008, p. 93. (1988) and Roeselare (2000). 69 Swiss Institute of Comparative Law, 2008, p. 94. 46 Duke and Renson, 2003, p. 73. 70 Swiss Institute of Comparative Law, 2008, p. 94. 47 For more information about the identification of supporters with their club, see Breda, J. and Mortelmans, D., ‘”Rood-witte honden en Kielse ratten” De identificatie van supporters met hun club, Een geografische studie naar de breuklijnen bij Antwerp FC en Germinal Beerschot’, University Antwerp, Faculteit Politieke en Sociale Wetenschappen Academiejaar 2006 – 2007. 48 Wurbs, D. and Schneider, T., ‘Handbook on developing and establishing supporters’ charters in Europe’, European Convention on Spectator Violence and Misbehaviour at Sports Events and in particular at Football Matches (T-RV), Council of Europe, 31 January 2008, pp. 34-36. 49 Response of C. Poskin, Community Manager, Standard de Liège, e-mail of 18 February 2008. 50 The “&AMILLEDES2OUCHES” federation supporting the 2OYAL3TANDARDDE ,IġGE, the &ÀDÀRATION des supporters du Club brugeois; Comparative Study of the Legal Structures of Football Clubs and Supporters’ Organisations in 45 Juristictions, Swiss Institute of Comparative Law, March 2008, p. 92; Swiss Institute of Comparative Law, March 2008, p. 93. 51 Swiss Institute of Comparative Law, 2008, p. 93.

%8%#54)6%35--!29 "ELGIUM

References Gomez, P., ‘A special meeting for a special matter’, News ‘Best Practice, Prevention of Football Violence, Part 2: “Football from members associations, 2006, HTTPWWWFOOTBELCOM in the Community”, a Plea for more Solidarity’, A publication from DOCUMENTS$%+"6"5%&!$IRECT%.0AGE FROM the Federal Public Service of Home Affairs, 'ENERAL$IRECTORATEFOR PDF. 3ECURITYAND0REVENTION0OLICY, Football cell, version April 2008. Halpin, P., ‘Match fixing a history’, The Observer, 8 January 2006. Breda, J. and Mortelmans, D., ‘”Rood-witte honden en Kielse ratten” De identificatie van supporters met hun club, Een Kesenne, S.,’Belgian Football – A Comment’, *OURNALOF3PORTS geografische studie naar de breuklijnen bij Antwerp FC en %CONOMICS, Vol. 8 No. 6, December 2007, pp. 670-676. Germinal Beerschot’, 5NIVERSITY!NTWERP &ACULTEIT0OLITIEKEEN 3OCIALE7ETENSCHAPPEN!CADEMIEJAAR 2006 – 2007. Kesenne, S.,’Comparing management performances of Belgian Football clubs, Research Paper 2007-028, University of Antwerp, Comeron, M., Socioprevention through Social and Pedagogical Faculty of Applied Economics, December 2008, pp. 1-12. Coaching, Eurofan Book, 2006, pp. 83-85.

McArdle, D., From Boot Money to Bosman: Football, Society and Corporate Governance Committee,’ The Belgian Code on the Law, London: Cavendish Publishing, 2000. Corporate Governance’, 9 December 2004, http://www. corporategovernancecommittee.be/library/documents/ Morris, S. and Spink, P., ’EC Law and Professional Football: final%20code/CorpoGov_UK.pdf. Bosman and its implications’, -ODERN,AW2EVIEW, vol. 59, no. 6, pp. 893-902. Dejonghe, T., ‘The Evolution of Belgian Football over the last Decades’, 5%&!)!3%3EMINAR,’The economic impact of UEFA Soccer Investor, 28 April 2008. Champions League national football economics’, Nyon, 2006, pp. 1-45. Swiss Institute of Comparative Law, ‘Comparative Study of the Legal Structures of Football Clubs and Supporters’ Organisations Dejonghe, T. and Vandeweghe, H.,’Belgian Football: The Financial in 45 Jurisdictions’, Volume I, Lausanne, 14 March 2008, pp. 1-367. Crisis’, 2004, pp. 1-20, 4HE2IMINI'ROUP, http://www.imperial. ac.uk/business/dynamic/other/RiminiGroup/report120304/ Wurbs, D. and Schneider, T., ‘Handbook on developing Reports/BELGIUM.doc. and establishing supporters’ charters in Europe’, European

Convention on Spectator Violence and Misbehaviour at Sports Deloitte, Annual Report of Football Finance, May 2008. Events and in particular at Football Matches (T-RV), #OUNCILOF %UROPE, 31 January 2008. Duke, V. and Renson, R.,’From Factions to Fusions? The Rise and Fall of Two-Club Rivalries in Belgian Football’, )NTERNATIONAL 2EVIEWFORTHE3OCIOLOGYOF3PORT38/1, 2003, pp. 61-77.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? #ZECH2EPUBLIC

Summary 35

General Introduction to Economic, Political and Cultural Environment 36

1. Structure of Czech football 35 1.1. Government 36 1.2. Českomoravský Fotbalový Svaz – Czech-Moravian Football Federation 37

2. Structure of Czech Football Clubs – Ownership and Governance 37 2.1. Ownership Structures 37 2.2. Governance Structures 37 2.3. Financial Regulation – Licensing System 37 2.4. Financial Performance 37

3. Fan Culture 38 3.1. Supporters’ Clubs and Bohemian Supporters’ Trust 38 3.1.1. Supporters’ Clubs 38 3.1.2. Družstvo Fanoušků Bohemians (DFB) – Bohemian Supporters’ Trust 39 3.2. Fanprojekt Liberec 40 3.3. National Supporters’ Representation 40

4. Suggestions 40 4.1. Adequate Legal Structure for Supporters’ Clubs 40 4.2. Supporters’ Involvement in their Communities and Image of Football Supporters 41 4.3. Fan Liaison Officers 41 4.4. National Supporters’ Organisation 41 4.5. Football Authorities 42

Summary

 Czech Republic football has been Under the new regime the rules of the authorities nor the clubs have targeted governed by the Czech-Moravian Football Czech-Moravian Football Federation it accordingly. Most supporters’ groups Federation since 1993. After the ‘velvet provide the ownership structure of joint currently use informal structures, while the revolution’ in 1989, football in Czech stock companies that must be adopted Bohemian supporters’ trust is the only one Republic had to be reorganised and most by its members. Even though the Czech of its kind in the Czech Republic. There is notably professional football replaced economy has been growing, for years the no national supporters’ group representing the socialist structure of sport. Hence the revenue from TV rights and sponsorships club-based supporters and, according new first division officially started only in remained static and the budgets of the first to the information available, nobody is the 1993/94 season. The Czech-Moravian league clubs decreased. Overall, revenue pursuing any intention to establish such Football Federation organizes the football is low and the low matchday attendances a group. In principle, the fan scene in the leagues, 'AMBRINUS LIGA and 2. LIGA, and have not generated any significant Czech Republic is relatively new and the the Czech Republic national football team. additional income. level of fan organisation relatively low. The Ministry of Education, Youth and Football is attempting to become the Sport governs sport, but has adopted a  Fan clubs can be characterised as primary sport in the country and advice and non-interventionist model in combination classical supporters’ clubs, often united in information provided by a Supporters Direct with a basic law on sport. Neither the supporters’ federations who, for example, Europe could be beneficial at this stage. government, nor the football association handle ticketing and travel to away games. have relationships to supporters groups In principle, fans are not involved in any and there has been no evidence of any decision-making processes within their 1. Structure of Czech Football support for the improvement of dialogue clubs. However, informal contact between with fan groups. the club and its fans, where classic The collapse of the communist state and its supporters’ club issues are discussed, planned economy has had a huge influence  Back in the communist state all football do often exist. Fan culture in the Czech on all aspects of Czech society. Due to the clubs were non-profit organisations, Republic has not yet been recognised associated social and political changes closely bound by strict regulations. as a social phenomenon, and neither the over the last 20 years, professional football

%8%#54)6%35--!29 #ZECH2EPUBLIC

General Introduction to Economic, Political and Cultural Environment The separation of the Czech Republic from the Slovak Republic reasonably active in the Czech Republic, liquidity is clearly lower in the early 1990s had a major impact on the evolution of the than in market economies. Furthermore, there is much block- country, shaping a new economic and social context. The trading off-the-exchange, often at prices different from those on country’s new constitution was ratified in December 1992 the exchange. The prices at the exchange may then be more a and was effective from the 1st January 1993. The country is a reflection of the valuation of firms by minority shareholders, and pluralist multi-party parliamentary representative democracy, not necessarily incorporate the value of control’5. and is divided into 14 administrative regions. The Czech Reporting standards are still far from perfect, and the main Republic joined NATO in 1999 and the European Union in 2004. forces behind the improvement of corporate governance in the When compared to other post-Communist states in Central Czech Republic are non-governmental organisations and the and Eastern Europe, the Czech Republic has the highest European Union. Shareholders generally take a passive stand economic growth. However, the Republic has been recovering and they do not push for extra transparency; simply deciding on from a recession since mid-1999. Recent growth has been led by a model of corporate governance seemed challenging for them. exports to the European Union, especially Germany, and foreign The flexible Anglo-American approach was preferred in the investment. An increase in domestic demand, the tightening of beginning of the country’s transformation, although now, with social benefits, and reforms in pensions and healthcare have EU accession, the Continental model of corporate governance all been challenging prospects for the country, while the rate is more accepted. This oscillation has often resulted in hybrid of corruption has remained one of the highest among OECD corporate governance models. countries1. Non-profit organisations (mainly being civil associations) After the so-called ‘velvet revolution’ in 1989 the Czech were disbanded after 1989, as such independent public Republic went from a communist to a market orientated initiatives were deemed undesirable. In a study of the Czech economy, with big changes implemented in the ownership Republic’s non-profit sector, performed by Fric et al in 1998, and governance structures of companies. This privatisation it was asserted that negative public perception was the main happened in two phases2, with the so-called voucher challenge that non-profit organisations had to overcome6. Non- privatisation scheme beginning in 1991, which was a mass profit organisations are associated with ‘fraudulence, waste of privatisation scheme, occurring on a scale previously unseen in public resources or inconsequential fringe groups7 by a large transition economies. section of the public. However, since 2002 the number of non- Overall, vouchers representing interests in about 1,850 profit organisations has been rising due to reforms, improved firms were offered between 1991 and 1994. About 70% of the public awareness, and EU membership, the latter of which Czech economy was in private hands after only a few years3, has provided funds for supporting the activities of non-profit and a complicated web of interlocking and non-transparent organisations. It has been suggested that further lobbying in ownership structures emerged. ‘Thus the Czech Republic does Europe could help to raise awareness and acceptance of non- not offer a clear data environment to work with’4. ‘Stock market profit organisations within the society of the Czech Republic, data also have some weaknesses. While the stock market is thereby strengthening their importance and influence.

has replaced the socialist structure of stadiums, who tried to fill the gaps left by 1.1. Government sport. Previously, all football clubs were the Slovakian teams went bankrupt. The Prior to 1989 sport was governed in a non-profit organisations that were closely global football market that Czech football centralised way, but when the Czech bound by strict financial regulations, clubs suddenly became a part of was alien and Slovak Republics separated the while football players had amateur status to them, and so were the various revenue government’s previous control on sport and were employed by factories and streams that professional football clubs in suddenly ceased10. The government nationalised enterprises. other European countries considered part needed to redefine its role in sport in a time In the context of the mass privatisation of their budgets. Even though the Czech of countrywide change and reforms. New that Czech enterprises and factories economy has been growing, for years the sports legislation was needed, but at the underwent, football clubs also had to revenue from TV rights and sponsorships same time the old definition of sport had to adopt new forms of private ownership has remained static and the budgets of yield to a newer decentralised translation. to survive after the communist era. As a the first league clubs decreased9. Overall, Consequently, professional sport emerged, result of these unstable times, many key revenue is low and the low matchday which, according to Novotny and Pouraux, players left the clubs for the higher wages attendances have not helped to generate was almost not existent before 198911. paid in Western Europe. The quality of any additional income. The Czech Republic has adopted a non- Czech football was affected enormously Football clubs changed quickly from interventionist model in combination with a by these transfers, and the game became non-profit organisations to commercial basic law on sport. ‘Sports associations less attractive to fans. However, these enterprises, the latter of which were suddenly became independent and are player transfers became the clubs’ bought by businessmen who were still required to comply with more general biggest revenue streams8. connected to the old system. Many legal regulations’12. Sports federations are The new first division officially started of these businessmen were linked to represented by the Czech Confederacy of in the 1993-94 season. The Slovakian corruption cases and sent to prison. The Sports, who deal with employment, pay teams were now playing in their own personnel of the Czech FA changed after and social issues13. league and had to be replaced to keep the corruption scandal in 2004, but the The Ministry of Education, Youth and the Czech league alive, but many of the conditions that led to corruption taking Sport (Act No. 115/2001) governs sport and smaller clubs, with their relatively small hold remain in place. provides sponsorship by financing sporting

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? #ZECH2EPUBLIC organisations. The Sport Ministry consists registered capital of the company has to Since then, all 32 professional football of the Council of Physical Education and be at least CZK 2,000,000. The registered clubs from the 1st and 2nd division have to the Council of Sports Representation. Both capital is divided into shares’25. fulfil certain criteria, which among others, private and public sports associations cover personal and administrative, legal are bound by the general legislation, but 2.2. Governance Structures and financial issues. they are all governed by their respective Football clubs are structured as joint stock Fundamentally, the clubs have to federations. There are more than 20,000 companies, with a management board and be financially accountable. A series of local sport clubs operating in the Czech a supervisory board. The management documents need to be presented, including Republic, and the larger civil associations board, which is responsible for the day-to- financial statements for the current playing are represented on the advisory board day business of the company, has to have year as well as a financial plan for the next of the Ministry’s Council of Physical at least three members. The members of season. The most important aspect is the Education14. the management board are elected for a applicant’s liquidity, specifically to ensure Sports organisations are currently maximum of five years, and it is they who that operations are maintained. Hence, funded by both governmental and non- elect their own chairman. the applicant needs to assure the payment governmental funds. The government The supervisory board reviews the of any unpaid transfer commitments and funding comes from Sazka, a private performance of the management board, liabilities towards staff. lottery company, and is mainly ‘used and informs the shareholders at the general Clubs which fail to comply could to cover (the) operating costs of the meeting about the annual accounts. In be banned from the competition by the sports associations’15. Sazka has a legal principle, the supervisory board has the Czech-Moravian Football Federation. obligation to spend a certain percentage right to review all the company’s activity It has been common practice to punish of their profits on ‘social ends or any other and to analyse accounting and other cubs which fail to comply with a ban on purpose in the interest of the public. Funds company records. The supervisory board transfers until the clubs have paid-off all allocated to not-for-profit organisations, has to have at least three members as football creditors (e.g. players, coaches or including sports organisations, are tax well. The employees must elect one-third agents). The licensing system is currently free.’16 All in all, Sazka spends 20% of their of the supervisory board’s members if under revision. revenue on sports. the company has more than 50 full-time employees (the member elected by the 2.4. Financial Performance 1.2. Českomoravský Fotbalový Svaz employees is usually a representative of The most important revenue stream for – Czech-Moravian Football Federation the labour union)26. The general meeting football clubs in the Czech Republic The Czech-Moravian Football Federation elects both the management board and comes from player transfers and the has been the governing body of football in the supervisory board. Among other accompanying fees. Compared to the Czech Republic since 1993. It organizes matters, the general meeting has the final the revenue gained from transfers, the football leagues, 'AMBRINUS LIGA and decision where changes to the articles sponsorship, TV and ticket revenue do not 2. LIGA, and the Czech Republic national of association are concerned, and it play a major role in clubs’ budgets28. football team. The structures that govern also approves the company’s financial The collapse of government funding football in the Czech Republic are laid out statements. in the early 90s resulted in many financial in the Czech-Moravian Football Federation ‘A public offering for a subscription problems for sports organisations, statutes and the organisational directive of shares must be made, and a General requiring them to be self-sufficient on an for Czech football organisations17. Meeting on the establishment of the almost day-to-day basis. When the six company must be held by the subscribers, Slovakian clubs left the Czechoslovakian unless the founder(s) agree in the [articles] league and formed their own league, six 2. Structure of Czech Football of association to pay the total registered clubs from the Czech second league were Clubs – Ownership and capital of the company themselves in a promoted to the Czech first division. Many Governance18 certain ratio. If the shares of the company clubs were struggling financially while they are subscribed through a public offering of adapted to the new system and economic 2.1. Ownership Structures shares, the prospectus in accordance with environment of professional football, as According to the licensing system the Act on Capital Market Business must be they didn’t receive state financial support administered by the Czech-Moravian approved by the Securities Commission, anymore and their debts were rapidly Football Federation all professional football prior to publication of the announcement accumulating. The clubs were suddenly clubs in the 1st and 2nd division have to be on the public offering, and published no left with a level of independence they had organised as joint stock companies19, i.e. later than jointly with the public offering. never experienced before, requiring their FC Bohemians 190520, SK Slavia Praha21, Joint stock companies can trade shares on prompt adjustment to the new capitalist AC Sparta Praha22 and FC Banik Ostrava23. the Prague Stock Exchange if their shares economy29. Sporting organisations had to Joint stock companies have the are accepted for trading under Prague look for alternative revenue streams, which legal structure of a capital company24. ‘A Stock Exchange rules and the Securities wasn’t an easy task in this environment. constituent general meeting must be held Act. Those rules also set the framework for Additionally, in this transition phase and the Articles of Association approved. dealing with share transfers’27. the public’s general interest in sport It is also necessary to obtain confirmation was limited, as was their will to engage that the contributions required to be paid 2.3. Financial Regulation – Licensing financially30. upon registration of the company in the System Clubs rely on transfer fees and as such Commercial Register have been paid. In The Czech Licensing Manual was they have to sell their best players, which general, a trade licence or concession approved by the Executive Board of the makes it difficult to establish a high quality must be obtained for each activity the Czech-Moravian Football Federation in squad. Accordingly, the games have joint stock company is to perform. The February 2004. become less attractive, with fewer people

%8%#54)6%35--!29 #ZECH2EPUBLIC attending them or even watching on TV. irregular, which makes it difficult to paint made it difficult for them to attract people Additionally, after the corruption scandal a clear image of fan culture or find any to their initiative; they simply did not know in 2004, TV rights were much less valuable pattern in the actions of fans. When it whom to address. However, in the case than they had been previously, which comes to attendances, or indeed any type of the Bohemians this pattern changed, heavily influenced investor behaviour. of community behaviour, many Czechs as many football fans from all over the Furthermore, it is only recently that TV seem to decide spontaneously whether country supported the club when it was in rights for the national team and the league or not to attend a game, and their decision administration by becoming members of have been sold separately. For many can even be non-club related. Sometimes the DFB. years previous to this they were sold as a games can suddenly sell out, and then In terms of fan representation, the package. the stadium can be empty in the next supporters’ trust at Bohemians is the Overall, there are no official statistics fixture. There are not even any patterns only one that exists in the country. covering economic data for all of the where the big games are concerned, and Although some other clubs do have fan professional clubs in the Czech Republic. although attendance is higher in principle representatives, or they at least have All the figures that are presented in the they do not often attract particularly big members of the relevant supporters’ clubs media are unofficial. crowds. For example, only 6,000 tickets in their management teams. were sold one week before the February 2008 UEFA Cup tie between Slavia Prague 3.1. Supporters’ Clubs and Bohemians 3. Fan Culture and Tottenham, despite a stadium capacity Supporters’ Trust of 20,000. Football in the Czech Republic went There have been attempts to explain 3.1.1. Supporters’ Clubs through a rather violent phase during the these behaviours. In general the Czech Most supporters’ groups currently use 1980’s. According to Landa, and in contrast economy is growing and as the tickets informal structures to avoid incurring with most other locations in communist prices are affordable, and the stadiums are additional costs and bureaucratic burdens. society, public control measures could more or less comfortable, these aspects However, some groups do proclaim that be evaded in the stadia31. The authorities can be ruled out. The main cause for this they are non-profit associations, even eventually responded with repression, decline in the interest of football needs though they are often not registered which led to Czech football becoming to be related to the societal changes that as such. Nevertheless, many groups unattractive to ordinary supporters, and were introduced by the Velvet Revolution follow democratic structures, vote on average matchday attendance fell to an all in 1989. The activities offered prior to the their statutes, elect their own board, and time low. collapse of the communist state were have allocated budgets. However, their The introduction of the market oriented limited, and attending football games was formal influence on the decision-making economy and many new clubs caused the a popular leisure time activity; football processes within the clubs is limited, composition of the audience and the level attracted sizeable crowds of between and sometimes non-existent. The use of of brutality to change as well, ‘including 20,000 and 30,000. However, in the 1980s unofficial structures, and informal meetings supporters from militant socio-political attendance fell dramatically and the held with ultra groups, often seem to have movements’32. Matchday attendance has number of violent incidents rose. Social life more success than when the fan clubs use been falling dramatically since the 1990s; in the Czech Republic has since changed the official structures. the average attendance in 1986 was 4,000, and football games are only one of many The supporters’ clubs represent their which increased in the mid 1990s although possible leisure time options, that are now members and organise travel to games. the average attendance dropped to 3,700 available to Czechs. Anybody can join them and they are by 200433. The growing group among The corruption scandals, the most mostly financed through membership spectators has been young people and recent of which occurred in 2004, are fees and small grants that are provided by students, while middle class supporters another reason for the limited interest in the clubs. The groups do not receive any have been losing interest. Czechs are football. It has been argued that many financial support from the local council, generally more interested in Ice Hockey, Czechs have lost confidence in the game government or the community35. They their most popular sport, and their national and its authorities as the games were have regular meetings, consultations with football team. Only the big games in league obviously fixed34. Since then the reputation other stakeholders, and meet football football seem to have the potential for of the Czech FA, club officials and referees club representatives on a regular basis, attracting bigger crowds. has improved, but the image of corruption although they have no contact with the The lack of interest in league football remains, especially as many of the people Czech-Moravian Football federation. has been hugely influenced by the many who were involved in the scandals remain The DFB is the only supporters’ group scandals the sport has experienced. Even active behind the scenes. that has representation on board of their though matchday tickets are affordable, The number of dedicated fans who do club. However, others have expressed football has never been marketed as not belong to either the ultra or hooligan that they would find it very useful to have entertaining and exciting. In general, movement is low. There is no such thing as an elected fan representative on their football is considered to be corrupt and it a fan ‘community’ like we know in Germany club’s board. Additionally, other groups lacks quality as the league’s best players or the UK, for example. Neither are there have shown a general interest in a central leave Czech teams for the higher wages any such communities that are dedicated information tool (website) that would keep paid in Western Europe and elsewhere. to the clubs around the stadiums. Hence, it everyone updated, whilst also providing a This situation, paired with bad or absent is difficult for the clubs to approach fans or forum for discussion36. marketing, creates a mixture that is clearly to even increase their fan base. According In the clubs, communication between unattractive to potential supporters. to the president of the Bohemians the individual fan groups and the umbrella The behaviour of football fans in Supporters’ Trust ($RUwSTVO &ANOUsKÐ fan club can be challenging. They often the Czech Republic seems to be rather "OHEMIANS (DFB)), the lack of a community operate separately and do not appear

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? #ZECH2EPUBLIC to work in the same direction, leading to were not interested in financing the club. fans can post questions directly to the suggestions that unity between them is The new owners, FC Bohemia 1905, bought club’s director through the forum on the required before they can attain a stronger the league license, the grounds, and 89.77% club’s website, and these are answered voice37. However, presently the groups lack of the club. Hence, the trust had to purchase on a daily basis44. constructive ideas on how to achieve this. 10.23% of the club’s shares. The trust has gone quiet since their The management teams of at least Of the overall CZK 40 million in debt, activities in 2005, and has become more two clubs have (board) members from the 20% was, and still is, owed to so-called of a shareholding supporters’ club that relevant supporters’ club working in them38. football related matters like agents, players mainly handles travel and security matters They are the main contact points for fans, and clubs, while the rest was owed to on behalf of the fans. Their membership although they do not take on the role of an non-football companies and others. The 1,500 in 2005 – has only grown by roughly official fan liaison officer like others do in, for Czech-Moravian Football Federation sold 100 fans, mainly attracted by ticket example, Germany. These ‘representatives’ the football related debts to the club, which discounts. 750 members attended the seems to have a challenging workload, as decreased the club’s football-related first general meeting of the trust, but only they have no official role as fan managers liabilities to 10% of the total. 50 members were present at the latest and at the same time they hold other The club has eight staff, including meeting, held in summer 2007. positions in the club. five directors, and there are three The president of the trust believes To the best of our knowledge there elected members on each of the club’s that the 10.23% of the shares they hold is at least one club where individuals management and supervisory boards, only has symbolic value45, and according who own only one or two shares meet while the trust has one representative to him there is no ambition for gaining occasionally with the club’s management on the club’s supervisory board. The influence in the club’s decision-making and attend the general meeting. management currently plans to attract processes. The enthusiasm felt in 2005, However, they are not organised as more fans by building a new stadium. One and the support received from all over the minority shareholders and, their small of the directors of the club was open to the country, has clearly died out; the original shareholding gives them no special rights involvement of fans and also understands aim was no less than saving the club, regarding decision-making39. that the trust has the potential to not only but there were no greater aspirations increase the club’s membership, but also either. The trust’s involvement is currently 3.1.2. Družstvo Fanoušků Bohemians to help build a Europe-wide recognition of, restricted to having a representative on (DFB) – Bohemians Supporters’ Trust and solidarity with, the club42. the supervisory board, who happens to The formation and history of the DFB is be a lawyer, although the representative’s worth mentioning here, as it is the only · Structure of the DFB scope of influence is not clear. supporters’ trust of its kind in the Czech Transparency is not considered to be Republic. The DFB was established in The DFB took the form of a cooperative an inevitable prerequisite for the practice early 2005 and their initial aim was to help (“DRUZSTVO”), which is the cheapest way of democratic rights in the Czech Republic. their club, FC Bohemians 1905, out of to form a corporate entity in the Czech In the case of Bohemians, and any administration. They intended to do this by Republic, and its members are not other company, the accounts have to be attracting 1,500 members and raising CZK liable for the debts that are held by the published on their website. Information is 3 million, which they needed to pay the fine trust. The commercial code defines a exchanged on a regular basis, considering imposed by the football association for cooperative as an association based on the many communication channels in their financial performance in the 2004/05 the membership principle, and they must place, such as discussion forums, radio season. It only took them six weeks to have a minimum registered capital of CZK shows and informal meetings between generate the money required to pay the 50,000. Cooperatives are generally set up the club’s management and the fans. fine, and after this the trust spent CZK for business or other purposes, although However, there are concerns about the 200,000 on 10.23% of the club’s shares they are often seen as part of the non- information flow between the supervisory and then donated the rest to the club. To profit sector, as many cooperatives are board and the trust itself, with, for example, date, the trust has donated a total of CZK organised for social purposes43. information on strategic matters not being 3.5 million to the club. The general meeting elected the four adequately communicated46. The campaign was launched on board members of the trust in 2005, and Any analysis of professional football the club’s website, which the trust runs they then elected the president and the and fan culture in the Czech Republic independently40, and further press releases auditing commission. It also voted on the needs to take account of this fairly new and good contacts with the media spread trust’s statutes. The membership entrance state’s unique environment. In such a their message quickly. The key people fee is CZK 1,000 and the trust currently has context, the setting-up of the DFB is in the group included one lawyer, who is around 1,600 members, who benefit from a great achievement, considering the now member of the supervisory board of cheaper season tickets and reductions on fact that the weight of football, and its the club; one web administrator, who is trips to away games. corresponding fan culture, in the Czech now the president of the DFB; a business Republic is comparatively small relative manager; a popular sports commentator, · Influence of the DFB to other European countries. However, who is now one of the three directors of the any further development regarding the club; and the clubs most famous player, The trust manages the website, live radio DFB’s influence on the running of their Antonin Panenka41. Football fans from all shows and the publication of a magazine. football club is presently unrealistic. over the world paid money to the trust, The radio show is an essential discussion There is no further backing from the fan and contributions were even received from forum for the director of the club, the culture for democracy in Czech football. Slavia Prague, one of their historic rivals. coach and the fans, and every fortnight However, it seems that one of the club’s The biggest challenge was that the club fans can express their concerns on the directors wishes to involve the DFB in had no assets and, as a result, companies show over the telephone. Additionally, the management of the club. He not only

%8%#54)6%35--!29 #ZECH2EPUBLIC considers the trust to be a potentially 4. Suggestions 4.1. Adequate Legal Structure for image boosting vehicle for the attraction Supporters’ Clubs of supporters and sponsors, but also as Mapping out the various fan cultures, Most supporters’ groups presently use a unique characteristic that could help to existing fan groups and their respective informal structures to avoid additional create a brand on the European level. agendas has proved to be challenging. costs and bureaucratic burdens. However, Fan clubs can be characterised as some groups proclaim that they are non- 3.2. Fanprojekt Liberec classical supporters’ clubs, often united in profit associations, even though they are ‘Fan projects serve as a mainly supporters’ federations who, for example, not registered as such. Nevertheless, many independent mediating interface between handle ticketing and travel to away games. groups do follow democratic structures, vote all relevant parties in football, particularly In principle, fans are not involved in any on their statutes, elect their board, and have supporters, clubs and regulatory bodies. decision-making processes within their allocated budgets. However, their formal One of their major tasks is to provide clubs. Informal contact between the club influence in the decision-making processes a permanent communication channel and its fans, where classic supporters’ within clubs is limited, if not non-existent. between supporters and the club, to club issues are discussed, does, however, Supporters should adopt legal structures improve mutual understanding and thus to often exist. Fan culture in the Czech to allow them to have more influence in initiate sustainable and positive structural Republic has not yet been recognised their clubs’ decision-making processes. and ideological changes on both sides’47. as a social phenomenon, and neither the Furthermore, this could help to improve The projects mainly concentrate on social authorities nor the clubs have targeted it the image of organised fans in the Czech work and have no financial aims. Cultural accordingly. Republic, while ensuring that the groups and educational projects aim to prevent The only existing supporters’ trust follow the principles of good governance, violence among youth. at FC Bohemians 1905 has become democracy and transparency of accounts. Liberec is the only fan project in the more of a shareholding supporters’ The legal structure that supporters’ Czech Republic so far, and the project was club, although the trust does not have groups should adopt depends on how launched with the aims of campaigning much influence in the club’s decision- much influence they desire in the running against racism, discrimination and violence, making process. However, it seems of their football club. The DFB took the form while creating a friendlier environment for all that one of the club’s directors wants to of a cooperative (“DRUZSTVO”), which is the spectators. The project offers a club room to increase the involvement of the DFB in the cheapest way to form a corporate entity young football supporters where social and management of the club, and they might in the Czech Republic and, furthermore, preventive measures are provided to them, contact a Supporters Direct Europe for it means its members are not liable for the with an aim of improving the attitude and guidance. Nevertheless, any expansion trust’s debts. The commercial code defines behaviour of young supporters and thereby of the influence of the trust in the running a cooperative as an association based on helping to develop a new generation of fans. of its football club, or the involvement the membership principle, which must have The fan project has helped to improve the of supporters’ groups at other clubs, is a minimum of CZK 50,000. Cooperatives communication between supporters and presently unrealistic. There is no further are generally set up for business or other the club, keep young supporters away from backing within fan culture for democracy purposes, but they are seen as part of the violent supporters’ groups, and establish in Czech football. non-profit sector as many of them follow relationships with supporters’ groups In general, fan groups simply do not social purposes. Establishing a cooperative outside of the Czech Republic. Overall, have any strategies, nor do they follow involves a constitutive meeting that assigns there has been a reduction in reported any particular ownership and governance the value of basic capital, approves the code violent incidents within the stadium since models. Hence, the creation of a national of rules, and elects the cooperative board the project was set up. The project has supporters’ federation could have the and control commission. received financial support from the club potential to lobby for the rights of fan Supporters’ groups could take the and the public sector. The club room and groups on a national level, while helping structure of joint stock companies, which required equipment were subsidised by the to increase their influence and image on have to have management and supervisory Interior Ministry with a grant of CZK 100,000 the club level. Our research shows that boards, as well as clearly defined in 2004, but the project is still struggling to there is no football community in the governance regulations. The general sustain itself as salaries and other costs Czech Republic, as seen in countries meeting elects both the management and were not covered48. like Spain or the UK for example, and supervisory boards, and it decides on fan culture is not accepted as a social changes to the association’s articles and 3.3. National Supporters’ entity. Hence, there is likely no clear approves its financial statements, among Representation role for a Supporters Direct Europe in other matters. Although the structure There is no national supporters’ group the Czech Republic at the moment. We of a joint stock company would enable that represents club-based supporters believe that football supporters in the supporters to cooperate with another joint in the Czech Republic, and to the best Czech Republic require help in adopting stock company, e.g.: companies managing of our knowledge nobody is pursuing the adequate legal structures for their football organisation activities, the any intention to establish such a group. groups, improving their involvement with administrative and financial requirements However, there is the &ANCLUB &OTBAL49, the potential community, and in improving are comparatively high, and hence dissuade which is the national body for supporters their image. Furthermore, the creation of supporters’ groups from adopting such a of the national team. However, it has been a national supporters’ federation could structure. suggested by some fan representatives represent club-based supporters’ groups Supporters’ groups could also adopt that a national supporters’ federation on the national level, while additionally the form of associations50. The groups would be useful for representing and helping to establish a relationship with the could then design their governance protecting the interests of active fans on Czech-Moravian Football Federation. structure including, goals, economic the national level. management, rights and duties and the

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? #ZECH2EPUBLIC number and composition of organs, via has experienced has contributed greatly vehicle for improving a club’s relationship statutes. Supporters’ groups organised to the lack of interest in the sport. with its community, and there have been as associations would be less effective in Additionally, even though matchday tickets suggestions that help should be given to influencing the football clubs than if they are affordable, football has never been aid the establishment and coordination of were structured as joint stock companies. marketed as entertaining and exciting. more fan projects in the Czech Republic53. However, the administrative, legal, and Football in the Czech Republic is generally A moral case can also be made as financial skills required are much lower than considered to be corrupt, and it lacks supporters may actually have a negative within joint stock companies. quality as the league’s best players often impact on the communities that surround Another legal structure supporters’ leave for the higher wages paid in Western a football club, thus the negative impact groups could adopt is the public benefit Europe, Russia, Ukraine or Poland. It is might be addressed through supporter’s corporation, delivering beneficial services to often the national side’s players, including groups delivering public benefit via the general public and all other clients under U21 and U19 representatives, that are community activities. Supporters are a identical terms and conditions to those other sold. This combination, paired with poor key stakeholder of football clubs, and forms of organisation mentioned above. The or no marketing, is clearly unattractive to therefore could provide an important and profit gained in such a structure may not be potential supporters. The behaviour of valuable link with the communities that the used for the benefit of its founders, members football fans in the Czech Republic seems clubs affect. Furthermore, the kudos that of its bodies, or its employees. ‘The Public to be irregular / random, and it is difficult to are associated with being a football club Benefit Corporation may apply for subsidies find any patterns in, or paint a clear image can be used to develop activities that meet granted from the governmental budget, from of, fan culture. The decision by Czechs to local needs. the budget of the District Administrative attend a game, or any type of community Office, from the communal budget or from behaviour, appears to be spontaneous, and 4.3. Fan Liaison Officers the budget of another territorial body of the the game attended may not even be related Some clubs have fan ‘representatives’, public administration, as well as apply for to their club. The number of dedicated fans or at least members from the relevant grants from a fund established by the law. who do not belong to either the ultra or supporters’ clubs, in their management As such, this can make the running of such hooligan movement is low, and there is no teams. Our research has found that these a corporation less financially demanding. ‘community’ like those seen, for example, ‘representatives’ are the unofficial contact The budget may be granted to the Public in Germany or the UK. Additionally, there for fans, but they mainly have other jobs to Benefit Corporation for one and the same are no communities dedicated to the fulfill, e.g. communication and marketing. project, or one and the same activity, from clubs around the stadiums, and hence it is As their workload is hefty and challenging a single source only. For a subsidy from the difficult for supporters’ clubs to approach to manage, we suggest the inclusion of a governmental budget, the Public Benefit the fans and increase their membership. so called fan liaison officer, along the line Corporation shall apply to the competent An important goal of Supporters Direct of the German model “&ANBEAUFTRAGTE”, governmental body according to the UK is increasing supporters’ involvement into the governance structure of the clubs. prevailing activity rendered by the Public with their communities, helping them Czech football clubs could have a fan Benefit Corporation. The body, through to strengthen bonds between their club liaison officer who is employed by the club which the subsidy is being granted, shall and its community. One example worth or working on a voluntary basis, depending decree the terms and conditions for granting mentioning of a football club and its on the size of the respective club and its the subsidy and it shall inspect and evaluate supporters’ club trying to reach its potential fan base. These fan liaison officers could the utilisation of the subsidy made’51. fans and community is that of FC Slovan help to build a bridge between the club The .EZISKOVKYCZ PBC (Information Liberec. The club is in regular contact and its fans, and to preserve and increase Centre for Non-profit organizations (ICN)) with fans and organises trips to football its fan scene. Hence the job profile of raises awareness about the non-profit matches. Furthermore, the club offers fan coordinators is relatively diverse and sector and its role in society. It encourages free football match tickets to schools, challenging. They inform the fans about professional governance structures within allowing them to reach young football relevant decisions made by the boards non-profit organisations and it supports supporters. The club also attractively and, in the other direction, communicate mutual cooperation, and as such it may be markets membership in the supporters’ the needs of the fans to the board. They able to assist supporters’ groups with any club by offering price reductions in build relationships, not just with fans, structural changes52. It is a transparent municipal shops, entertainment and but with the police, security officers, and organisation that works with donor service facilities, and half-price transport fan projects, and they also engage with organisations, public administration and to matches out of Liberec. Meanwhile, fan liaison officers at other clubs before business organisations. The ICN offers non- the fan project provides a club room and matches, ensuring that the fans behave in profit organisations important services, offers social and preventive measures, accordance with security guidelines. Fan operates a public library of specialised aimed at young football supporters, which liaison officers could not only help fans to literature, administrates both a database include discussions, setting up their own improve their image and their involvement of non-profits in the Czech Republic and a websites, and organising tournaments. in the club, but they could also help the database of financial resources available Supporters in the Czech Republic club to get to know its supporters and, to non-profit organisations, organises could improve both their reputation and ideally, increase its following. seminars, and facilitates specialised profile by being active in their communities. consultations. The activities, although good on their 4.4. National Supporters’ Organisation own merits, may lead to an increased A national supporters’ organisation 4.2. Supporters Involvement in their membership and therefore revenue, could be created to increase the local Communities and Image of Football while more importantly giving the group and national influence of supporters’ Supporters credibility with key stakeholders such as organisations in general. Such a federation The many scandals that league football the local authorities. Fan projects are one would represent and protect the interests

%8%#54)6%35--!29 #ZECH2EPUBLIC of active club-based fan groups on the to launch such an organisation. However, foreseeable future. There is certainly national level. The supporters’ clubs should supporters decide to launch a less dialogue between the authorities would be represented in the controlling national group, we believe they would and the supporters’ organisations in the organs of the federation on a pro-rata benefit from cooperation with the FSI. Czech Republic than there is in countries basis, depending on the number of This would help in addressing issues such such as England and Germany. The their individual members. Additionally, as ticketing, fan culture, discrimination, government and the Czech-Moravian the national fan group could help to and policing in football, while aiding Football Federation do not consult fan improve the image of organised fans the development of an influential groups on any of the football related in the Czech Republic and ensure that representative voice within the football issues we have discussed, and there has the different supporters’ groups follow structures of the Czech Republic. been no evidence of any support for the the principles of good governance, improvement of dialogue with fan groups. democracy and transparency of finances. 4.5. Football Authorities However, the football association does Some supporters have suggested that a The relationship between the fans and consider a central national organisation for national supporters’ organisation should the governing bodies is non-existent, advising club-based supporters’ groups to be established, but to the best of our and there is very little evidence that this be potentially beneficial for football in the knowledge there are currently no plans situation will change significantly in the Czech Republic.

1 Transparency International Annual Report 2006. 13 Novotny and Poupaux, p. 20. 2 ‘The share auctions, organised in five sequential rounds of bidding, were 14 Farkasova, H. in ‘The European Sports Charta Indicators Questionnaire’ of designed to reveal as much information and analysis of firm valuation the European Council, Sport Department, 6 March 2006. as possible, to improve price discovery. And after the bidding rounds 15 Novotny and Poupaux, p. 11; Sazka shareholders are the confederations vouchers were exchanged for shares and secondary trading started at the Czech Olympic Committee. on the Prague stock exchange’, Claessens, S., Djankov, S and Pohl, G., 16 Novotny and Poupaux, p. 11. ’Ownership and Corporate Governance – Evidence from Czech Republic’, 17 http://www.fotbal.cz/e/index.asp. Policy Research Working Paper 1737, The World Bank, Office of Regional 18 For the analysis of ownership and governance structures of Czech football Vice President East Asia and Pacific and Europe and Central Asia, and clubs and the most adequate legal structures for supporters’ groups, Middle East and North Africa Technical Department, Finance and Private we have made extensive use of the Swiss Institute of Comparative Sector Development Division, March 1997; The schemes resulted in Law, ‘Comparative Study of the Legal Structures of Football Clubs and relatively concentrated ownership of the shares offered. Two thirds Supporters’ Organisations in 45 European Jurisdictions’, Volume I, 2008, ended up with investment funds, most of them with a small number of pp. 1-367. bank sponsored funds. Losses had to be made transparent, prices were 19 Licence Manual of the Czech-Moravian Football Federation, ‘3.3. Legal liberalised and new accounting standards were adopted. Status of Football Clubs’, Prague, 19 February 2004. 3 20 Claessens, S. ETAL, 1997, p.1. http://www.bohemians.cz/. 4 Kocenda, E.,’Development of ownership structures and its effect on 21 http://www.slavia.cz/. performance: Czech firms from Mass privatisation’, CERGE-EI, Center For 22 http://www.sparta.cz/. Econ Research & Grad Education, and Econ Institute, Prague; Centre for 23 http://www.fcb.cz/. Economic Policy Research (CEPR); University of Michigan at Ann Arbor 24 For detailed information about the legal structure of joint stock companies, – The William Davidson Institute, January 2002. see Swiss Institute of Comparative Law, 2008, p. 166-167. 5 25 Claessens, S. ETAL, 1997, p.5; Lskavyan, V., Spatareanu, M., Swiss Institute of Comparative Law, 2008, p. 174. 2006,’Ownership Concentration, market monitoring and performance: 26 Swiss Institute of Comparative Law, 2008, p. 174. Evidence from the UK, the Czech Republic and Poland’, Journal of Applied 27 Swiss Institute of Comparative Law, 2008, p. 175. Economics, May, 2001, pp. 91-104, pp. 94-95. 28 Information taken from Interviews. 6 For a detailed overview of the historical background and the major types 29 Novotny and Poupaux, p. 3. of organisations please, see Fric, P., Deverova, L., Pajas, P. and Silhanova, 30 See also Čáslavová, E. and Berka, P., ‘The Financial Management of H.,’Defining the non-profit sector: the Czech Republic’, Working Papers Sports Clubs in Czech Republic’, Kinesiology 37, 2005, 204-213. of the Johns Hopkins Comparative Non-profit Sector Project, no. 27, The 31 Landa, September 2006, p. 14. Johns Hopkins University Institute for Policy Studies, 1998, 1-22. 32 anda, September 2006, p. 15; Smolik, J.,’Football fan culture in the Czech 7 Fric ETAL, 1998, p. 15. Republic’, Esporte e Sociedade, numero 3, July 2006, pp. 1-10. 8 Landa, P., ’Changes within the football crowds during the last 15 years 33 Landa, September 2006, p. 16. – Case of English and Czech Football’, Faculty of Physical Education 34 Information obtained from interviews. and Sport, Charles University, Prague, Czech Republic, Department of 35 To the best of our knowledge at least one fan groups at a club is treated Psychology, 30 September 2006, pp. 1-22, p.5. as a member of the sport club, rather than the football club, and hence 9 Landa, P., ‘Consequences of corruption scandal on stakeholders receives money from the state. – Case of Czech football’, Olympic Studies Seminar in Olympia, Greece, 36 Interview with Supras Unisono, FC Slovan Liberec, and Tomas )NTERNATIONAL/LYMPIC!CADEMY, 2006, pp. 1-12, p.8. Carnogursky, Fan Project Liberec, February 2008. 10 Novotny, J. and Poupaux, S.,’The transformation of sport in Czech 37 Interview with Ondŕej Zlámal, Press Officer SK Slavia Praha, Prague, Republic: an economic approach, Centre d’Economie de la Sorbonne et February 2008. CNRS, pp.1-23, p.20. 38 At SK Slavia Praha and AC Sparta Praha. 11 Novotny and Poupaux, p. 15. 39 Individual shareholders at SK Slavia Praha. 12 Novotny and Poupaux, p. 20. 40 http://www.bohemians1905.cz/.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? #ZECH2EPUBLIC

41 The first trust member was one of the most famous actors of Czech Republic, which helped to boost membership. 42 Interview with Lukáš Přibyl, President Bohemians 1905, Prague, 5 February 2008. 43 Fric ETAL, p. 9. 44 Interview with Lukáš Přibyl, President Bohemians 1905, Prague, 5 February 2008. 45 Interview with Antonin Jelinek, President Bohemians Supporters Trust, Prague, 5 February 2008. 46 Information obtained from interviews. 47 Wurbs, D. and Schneider, T., ‘Handbook on developing and establishing supporters’ charters in Europe’, European Convention on Spectator Violence and Misbehaviour at Sports Events and in particular at Football Matches (T-RV), Council of Europe, 31 January 2008, p. 36. 48 Interview with Tomas Carnogursky, Fanprojekt Liberec, February 2008. 49 http://www.fanclubfotbal.cz/. 50 ‘According to the Czech Associations Act (No. 83/1990, Coll.), citizens may establish associations, societies, unions, movements, clubs and other civic associations as well as trade unions (hereinafter referred to as “associations”) and unite in them. Legal entities may be also members of associations.’ Swiss Institute of Comparative Law, 2008, p. 176. 51 Swiss Institute of Comparative Law, 2008, p. 177. 52 http://neziskovky.cz/cz/ostatni/2493.html. 53 Interview with Tomas Carnogursky, Fanprojekt Liberec, February 2008.

References

Čáslavová, E. and Berka, P., ‘The Financial Management of Landa, P., ‘Consequences of corruption scandal on stakeholders Sports Clubs in Czech Republic’, Kinesiology 37, 2005, 204-213. – Case of Czech football’, Olympic Studies Seminar in Olympia, Greece, )NTERNATIONAL/LYMPIC!CADEMY, 2006, pp. 1-12. Claessens, S., Djankov, S and Pohl, G., ’Ownership and Corporate Governance – Evidence from Czech Republic’, 0OLICY2ESEARCH Lskavyan, V. and Spatareanu, M.,’Ownership Concentration, 7ORKING0APER, The World Bank, Office of Regional Vice market monitoring and performance: Evidence from the UK, the President East Asia and Pacific and Europe and Central Asia, and Czech Republic and Poland’, *OURNALOF!PPLIED%CONOMICS (001), Middle East and North Africa Technical Deprtment, Finance and 2006, 001, pp. 91-104. Private Sector Development Division, March 1997.

Novotny, J. and Poupaux, S.,’The transformation of sport in Farkasova, H., Czech Ministry of Education, Youth and Sport, Czech Republic: an economic approach, #ENTREDl%CONOMIEDE ‘The European Sports Charta Indicators Questionnaire’, LA3ORBONNEET#.23, pp. 1-23. %UROPEAN#OUNCIL, Sport Department, 6 March 2006.

Smolik, J.,’Football fan culture in the Czech Republic’, %SPORTEE Fric, P., Deverova, L., Pajas, P. and Silhanova, H.,’Defining the non- 3OCIEDADE, numero 3, July 2006, pp. 1-10. profit sector: the Czech Republic’, 7ORKING0APERSOFTHE*OHNS (OPKINS#OMPARATIVE.ON PROüT3ECTOR0ROJECT, no. 27, The Johns Swiss Institute of Comparative Law, ‘Comparative Study Hopkins University Institute for Policy Studies, 1998, 1-22. of the Legal Structures of Football Clubs and Supporters’ Organisations in 45 European Jurisdictions’, Lausanne, 14 March Kocenda, E.,’Development of ownership structures and its effect 2008, p. 166-167. on performance: Czech firms from Mass privatisation’, #%2'% %) #ENTER&OR%CON2ESEARCH'RAD%DUCATION AND%CON Transparency International Annual Report 2006. )NSTITUTE 0RAGUE#ENTREFOR%CONOMIC0OLICY2ESEARCH#%02  5NIVERSITYOF-ICHIGANAT!NN!RBORp4HE7ILLIAM$AVIDSON Wurbs, D. and Schneider, T., ‘Handbook on developing )NSTITUTE, January 2002. and establishing supporters’ charters in Europe’, %UROPEAN #ONVENTIONON3PECTATOR6IOLENCEAND-ISBEHAVIOURAT3PORTS Landa, P., ’Changes within the football crowds during the last 15 %VENTSANDINPARTICULARAT&OOTBALL-ATCHES (T-RV), #OUNCILOF years – Case of English and Czech Football’, &ACULTYOF0HYSICAL %UROPE, 31 January 2008. %DUCATIONAND3PORT #HARLES5NIVERSITY, Prague, Czech Republic, Department of Psychology, 30 September 2006, pp. 1-22.

%8%#54)6%35--!29 &RANCE

Summary 44

General Introduction to Economic, Political and Cultural Environment 45

1. Structure of French Football 45 1.1. Fédération Française de Football (FFF) – French Football Federation 45 1.2. Ligue de Football Professionnel (LFP) – The Professional Football League 46 1.3. The Government 46

2. Structure of French Football Clubs - Overview and Governance 47 2.1. Ownership Structures 47 2.2. Governance Structures 49 2.3. Financial Regulation – Licensing System 50 2.4. Financial Performance 51

3. Fan Culture 51 3.1. Supporters’ Groups at Clubs 52 3.2. National Supporters’ Associations 52 3.2.1. La Fédération des Associations de Supporters du Football Français (FAS) – Federation of French Supporters’ Associations 52 3.2.2. Coordination Nationale des Ultras – National Ultra Group 54 3.3. Dialogue with the Clubs 55 3.4. Dialogue with the Authorities 55

4. Suggestions 55 4.1. Adequate Legal Structures of Supporters’ Groups 56 4.2. Recommendations for the Management of French Football Clubs 56 4.3. The Ultras 56 4.4. Improving the Relationship between Supporters, their Clubs and the Authorities 56

Summary

 French football is governed by the businesses. All Ligue 1 and 2 football imposing changes on kick off times and Fédération Française de Football (FFF), clubs have adopted sports corporations by prioritising its own commercial interests, the French football federation, while The shares (SAO and SASP) as their structure. normally contrary to the supporters’ needs. Ligue de Football Professionnel (LFP), the Olympique de Lyon is the only football club The league also seems to be competitively professional football league, has authority registered on the stock exchange. unbalanced, with Lyon just having won its over French professional football. The Strict regulation from the National 7th title in a row, which leaves the rest of the league system is as follows: Ligue 1, Board for Management Control ($IRECTION championship in considerable uncertainty. Ligue 2, National and the Championnat .ATIONALEDU#ONTRËLEDE'ESTION[DNCG]) de France Amateurs (CFA). Professional has meant that finances in the game are  Historically, French citizens have shown football clubs are represented in their audited closely. This body is responsible a relatively low level of interest in their capacity as employers by the Union des for controlling the clubs’ finances through domestic competition when compared Clubs Professionnels de Football (UCPF). a number of measures, thereby preventing to other footballing nations of a similar In France, the sports division in the them from getting into debt. Approval is size. The French do not have a tradition Ministry of Sport is responsible for sports required from the DNCG prior to any player of involving fans in the management and policies and provides the framework for transfers, and the body also examines the ownership of the clubs, although both the organisation of sport with the French source of funding of any investor where the supporters and those running the Code du Sport including the regulation of French football clubs are concerned. clubs currently appear to be comfortable the ownership structures of football clubs. French football clubs are highly with their existing roles. Hence, the links dependent on broadcasting revenues. between supporters and the internal  In 1984 the State decided to change Many supporters perceive this to be a organisation of French football clubs the status of French football clubs from threat, as they feel that commercialisation typically involve the security staff, and the Members’ Associations due to the is becoming excessive (what they refer topics that are open to discussion by the increasing level of involvement from to as ‘modern football’), with television supporters mainly relate to security.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? &RANCE

General Introduction to Economic, Political and Cultural Environment The Fifth French Republic has an estimated population of Some companies may give their employees the right to elect 63.8 million, including its overseas territories. Mainland members of the supervisory body. In addition, some are also France’s political administration is divided in 22 administrative given the right to nominate one or more directors, subject to regions, which contains 96 departments, while there are four certain exceptions such as requiring the employee shareholding administrative regions and four departments overseas. The to be over three percent3. core democratic values of French society, “,IBERTÀ ÀGALITÀ The Paris stock exchange (%URONEXT 0ARIS) has around FRATERNITÀ (freedom, equality, fraternity)”, come from the French 750 companies listed on it4, and the CAC 40 is the benchmark Revolution of 1789, and these exist along with centralism, French stock market index composed of only French companies, strong government and DIRIGISME (interventionism)1. although foreign investors own about 50 percent of these In business, the pre-eminent role of state-owned companies companies’ shares. is so strong that it is common for the PRÀSIDENT DIRECTEUR The principles of French corporate governance have recently GÀNÀRAL (PDG) of any important national company to consult been legally strengthened, following the publication of the the government about any major acquisition, even when it is Viénot report (1999), the NRE law (on new economic regulations not required2. France has an insider system, where only a small – 2001) and the Bouton report (2002)5. Prior to this, many French amount of companies are listed on the stock exchange and their companies fiercely resisted any pressure to align their corporate ownership is mostly in the hands of few institutions, families governance practices with the Anglo-Saxon model. or government, who are responsible for their management. French companies can take various legal forms: société Furthermore, these core shareholders do not trade their shares anonyme (SA), société par actions simplifiées (SAS), société on the stock market very often. The capital market is rather illiquid, à responsabilité limitée (SARL), entreprise unipersonnelle à and its existing shareholders tend to have complete control over responsabilité limitée (EURL), société en nom collectif (SNC), its operations, reflecting its DIRIGISTE economic system. société en commandite simple (SCS), and société en commandite The management structures of French firms are a result of both par actions (SCA). The most common form in France is the SA. the state’s influence and direct control by the banks, who have In France the president-director general (PRÀSIDENT DIRECTEUR established close and stable relations with both management GÀNÀRAL (PDG)) traditionally holds both the roles of chairman and and shareholders. The French public sector is different from CEO, which often results in a greater concentration of power. that in a number of other countries due to specific legislation; a Some corporations have chosen voluntarily to split the PDG role board representative for employees exists on a state-owned into two separate positions, although this split is often motivated level, with the number of elected representatives depending on by a former PDG wishing to become the company’s chair, thereby the size of the organisation concerned. Three representatives can ensuring proper succession in the managerial positions6. be elected by institutions that employ between 200 and 1,000 The legal provisions that surround the structure of the board workers, whereas in larger enterprises up to a third of the board’s allow an SA to exist as one of two different types of organisation. size can be elected among the employees. Firms with fewer than The traditional system rotates around the figure of the PDG and 200 workers but above 50 have employee representatives that a board of directors, called the CONSEILDlADMINISTRATION, whose attend board meetings in a consulting role as they do not have the members are selected by the PDG and not by the Annual General right to vote. Those companies that have been privatised adopt a Meeting. The second system, which was introduced in 1966 and is more conventional management structure than that seen in the equivalent to the German one, provides a CONSEILDESURVEILLANCE former public sector. (supervisory board) and a DIRECTOIRE that appoints its president.

There are two main different types should be followed with the establishment the French national teams. The FFF has of supporters’ organisations. The of a dialogue between the supporters authority over amateur football and the traditional organisations have existed and the football authorities. A Supporters control of professional football, which since the 1970s, and one affiliated to Direct Europe could promote opportunities entitles it to regulate through its governing the Federation of French Supporters’ for responsible supporters’ groups and bodies and statutes. The one exception Associations (&ÀDÀRATIONDES!SSOCIATIONS foster engagement with the clubs they to this authority concerns the ability to DE3UPPORTERSDU&OOTBALL&RAN¾AIS(FAS)). support and the authorities. make disciplinary decisions, which are The actual organisation of their activities taken by the disciplinary committee of the depends on the clubs they support, and so Professional Football League (,IGUE DE they have tended to be loyal to directors. 1. Structure of French Football &OOTBALL0ROFESSIONNEL (LFP)). However, the The other type of organisation is the Ultra FFF can examine and reverse all decisions groups, which emerged in the 1980s. 1.1. Fédération Française de Football taken by the LFP where it deems them The supporters in these groups have a (FFF) – French Football Federation contrary to either the best interests of lower average age when compared to the The French Football Federation (&ÀDÀRATION football or the statutes and regulations. traditional organisations, and they are &RAN¾AISEDE&OOTBALL (FFF)) was founded The FFF has been recognised as a more critical where the clubs’ management in 1919 and has the legal structure of public body since 1945, and therefore are concerned, an attitude they reaffirm an association, meaning it follows the the state has delegated some of its own through their philosophy of independence 1901 association law (LA LOI D‹ASSOCIATION competences to the body. It also maintains from the club.  – hereafter ,OI ). Its aims are relations with other associations that are The formal links between supporters the organisation and development of affiliated to FIFA, the national sports bodies and the clubs they support typically football in all its forms, and to that end it and the public authorities. Furthermore, mainly involve security issues. The French also controls the teaching and practice the FFF is in charge of granting affiliation Senate’s report about football supporters of football, while additionally overseeing to clubs, granting sports licences and

%8%#54)6%35--!29 &RANCE sports agents’ licences, implementing the rights of the clubs in their capacity as The French state provides the sports and ensuring compliance with safety employers8. movement with significant resources, and regulations, governing football rules and the subsidy qualification criteria are well codes of conduct, organising medical 1.3. Government balanced to represent the wide democratic supervision and exercising disciplinary In France, the State is responsible for sports base of all the citizens involved in sport. The power on appeal. policy. The Sports Division of the Ministry state rules affecting sport organisations The top of the French league system is for Youth and Sport (MS) is responsible for are often based on the consent and advice as follows: ,IGUE, ,IGUE and .ATIONAL. sport at a national and international level. of a broad sport constituency12. Hence, the The three leagues each consist of 20 It manages and controls State funding size and diversity of the country’s sports professional clubs. In these divisions three to federations, groups, committees and council, and its impact on state policies, teams each are promoted and relegated associations, and together with partners offers French sport a sound democratic at the end of each season and below that from ministries and associations draws base. Over the last few years a trend operates the #HAMPIONNAT DE &RANCE up the training objectives in sports and has developed where more support has !MATEURS (CFA), with four teams moving management professions. Furthermore, it been given to regional and local sporting between the two CFA divisions at the end allows sports federations to organise and initiatives, while grants for national of each season. The CFA has 18 clubs in promote the practice of their disciplines federations have been decreasing. four regional leagues followed by the fifth and supports them via target agreements division, CFA 2, with 16 clubs each in eight and by providing technical frameworks. · Conseil National des Activités regional divisions. The French Code of Sport provides the Physiques et Sportives (CNAPS) In the third league, .ATIONAL, clubs can framework for the organisation of sport. – National Council for Sports and decide whether to retain their amateur The state also retains certain rights in the Physical Education status or to become fully professional, implementation of sports policies as part which is compulsory for ,IGUE  and . of the cooperation between the state and The MS established the National Council Promoted clubs must be able to prove the sporting movement and requires each for Sports and Physical Education (#ONSEIL they can meet certain financial rules to sport organisation to establish regulations NATIONALDESACTIVITÀSPHYSIQUESETSPORTIVES be able to accept promotion to the higher that foster the following principles: (CNAPS)) in June 2001. This body is league; in the past, clubs have been denied democracy, transparency, gender equality equivalent to the Supreme Sports Council promotion to the professional league due and self-regulation9. However, even though seen in other countries. It plays two critical to failing this test, government representatives are not roles in the country’s sport community: it prohibited from serving on sports governing provides consultative functions on sporting 1.2. Ligue de Football Professionnel bodies, the government’s interventionist- legislation, and it is also responsible for (LFP) – The Professional Football League type regulation of the sports movement has evaluating the state’s policies on sport. In The FFF possessed the legislative not affected its de facto independence and the latter role, it submits a report to both mandate that initiated the LFP’s creation. growth. the government and parliament on the The relationship between the LFP and The state’s development and promotion development of physical activity and sport the FFF has been further specified in an of sport in France is organised, both in France. agreement between both parties, with the regionally and nationally, across a wide FFF delegating its authority over French range of stakeholders: the Ministry for · French Code of Sport professional football to the LFP. This Health, Youth and Sport; decentralised agreement is revisited every five years and government bodies (22 regional and local All of the sport organisations in France it sets out the terms of their relationship government bodies for youth and sports, have been established according to and those powers they jointly exercise, and 83 local government bodies for youth the terms of the Loi 1901, and all sport which are not included and those conferred and sports, including nine in the French associations function, in theory, according exclusively on the FFF – namely issuing overseas departments and territories); to rules of democratic representation. sports and sports agents’ licences. 24 regional centres for sporting activities The French Code of Sport (#ODE DU The LFP’s role is to organise and manage and sports education (CENTRE RÀGIONAL 3PORT) provides the framework for the the regulations governing professional DlÀDUCATIONPHYSIQUEETSPORTIVE (CREPS)); organisation of sport. The code considers competitions (Ligue 1, Ligue 2 and the regional sports centres; and five national that physical activity and sports play #OUPEDELA,IGUE). It also establishes the schools and institutes10. The government’s an important role in education, culture, regulations that govern player transfers. involvement in professional sport takes social inclusion and social life, and place through two kinds of regulation. hence the promotion and development · Union des Clubs Professionnels de The first is legislation that covers those of these factors is of a general interest Football (UCPF) structures that govern professional sports to all13. Additionally, the organisation, at federal and local levels, including taxation management and funding of French sport The structure of French football has levels. The second is a labour law that is depends on the complementary nature a unique institution that is not found linked to the professionalism of athletes. of the authority exercised by, and the anywhere else in European football: the It also performs a counselling and contribution of, the various officials and Union of Professional Football Clubs (Union support role for the sport federations, parties who are involved in sport14, i.e. the des Clubs Professionnels de Football and goal-oriented agreements have been State (central and decentralised), regional (UCPF))7. The UCPF can be considered signed between the MS and the sport authorities, sports federations (with their to be the clubs’ true representative, as federations. The MS provides funding leagues and clubs) and professional it was established directly by the clubs’ for the sport federations, allowing them organisations. presidents and it does not merely derive its to fulfil their public-service missions and The code also allows local authorities power from the League. The UCPF protects implement ministerial policies11. to provide the football clubs with financial

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? &RANCE support. Where sporting associations, Some sections of PSG fans have 2. Structure of French Football or the companies they constitute, are a reputation for violent incidents and Clubs – Ownership and considered to be of public interest they the club has been disciplined for their Governance19 can receive public subsidies, although behaviour several times in the past. They the maximum amount of subsidies paid traditionally gather at different ends of the 2.1. Ownership Structures by all the local authorities as a whole ground – the far-right white nationalists All French clubs were structured as must not exceed €2.3 million per sporting in the Boulogne end and the multi-ethnic members’ associations prior to 1984, and season15. The decree also states that fans opposite them in the Auteuil. They are as such they had to follow Loi 1901. They missions of public interest can carry out continually clashing. were highly dependent on the funding various activities, such as participating Senators Bernard Murat and Pierre that was provided by the state, but due to in schemes that contribute to education, Martin consulted with various specialists the increasing level of business that was integration and social cohesion, or those to produce this report, which focussed becoming involved in sports the state that aim to improve public safety and on spectator violence and separated the decided to change their status. According prevent violence in sport. supporters groups into four separate to the French Code of Sport20, when Finally, the code’s decree 2001- 828 categories: isolated spectators, sporting associations meet two criteria of 4 September 2001 states that local supporters’ associations that are part of they are obliged to set up companies. authorities can spend up to 30% of their club, Ultras, and hooligans. They These criteria are when the revenue from the preceding year’s profit on service began the report by enumerating the their events is €1.2 million, or when their contracts. For sporting companies this incidents that were covered by the French remunerations exceed the ceiling of €0.8 amount has also been limited to an absolute media in the preceding season, and million. When they set up the companies, value of €1.6 million per sporting season: the senators stated that ‘the supporter the clubs can chose from the following “The money paid by local authorities to phenomenon couldn’t be maintained if its models: a one person company with limited groups of sports companies benefiting only incidents were violent ones’, and ‘the responsibility (ENTREPRISE UNIPERSONNELLE from service contracts, or agreements real violence in the stadiums seemed to be SPORTIVE÷RESPONSABILITÀLIMITÀE (EUSRL)), that are not considered to be of public less significant than commonly perceived’. or a public company for sports (SOCIÀTE interest, must not exceed an amount fixed They also admitted that ‘the assertion ANONYME ÷ OBJET SPORTIF (SAOS)), or a by law“16. These contracts concern several that the stadiums are increasingly violent public company for professional sport types of services, such as the purchase is false’, and that ‘95% of matches take (SOCIÀTEANONYMESPORTIVEPROFESSIONNELLE of tickets in sports arenas, purchasing place without incident’. Additionally, they (SASP)). Mixed local sports companies advertising space during sporting events, denounce the negative role of the media (SOCIÀTÀDlÀCONOMIEMIXTESPORTIVELOCALE or putting the name or the logo of the local asserting that ‘the security issue in the (SEMSL)) that were formed before the 29th authority on various types of merchandise stadiums is sometimes reported in an September 1999 can retain their previous (players’ shirts, club newsletters, tickets alarmist way by the contemporary media’. legal structure, although none of the and posters). They add that ‘the backing of supporters clubs who are currently playing in the first goes beyond the strict scope of the division have remained with this structure. · The French Senate Report stadium and for some members of these In Ligue 1 all the clubs have established groups, in particular for the youngest, SASP companies except for Auxerre, which The French Senate published a report it constitutes an important method of established an SAOS. Only Olympique de on the 26th of September 2007, called socialisation”. One other tension point Lyon is registered on the Stock Exchange. “Must we be afraid of supporters?”17, after is the use of flares, which are totally several violent incidents, in particular the condemned by the senators. · Associations incident in November 2006 near Paris’ Overall, the senators answered ‘no’ Parc des Princes football stadium. to the question ‘Must we be afraid of According to the Swiss Institute of On 24 November 2006 a PSG fan was supporters?’. Instead, they suggested Comparative Law, ‘associations are shot dead by police and another seriously that a ‘subtle combination of prevention paramount in France and are regulated by injured when violence broke out after and repression’ should be adopted, as the law of July 1st 1901. This law sets the Paris Saint Germain (PSG) lost 4-2 to ‘heavy sanctions result in a sound, but general framework of an association in a Israeli club Hapoel Tel Aviv in the Parc des repressive, system (this is inspired by very laissez faire manner, leaving a lot of Prince in a UEFA Cup match. the English model)’. Hence, if a dialog autonomy to the founding members. An PSG fans chased a French-Jewish between the supporters, the clubs association is created by contract, which Hapoel fan shouting racist and anti- and the authorities is considered to be must comply with the general conditions semitic slogans. A black plain clothes advisable, then it must be established. such as free and informed consent, civil police officer, who tried to protect the Overall, the main proposals from the capacity, a permitted corporate purpose French Hapoel fan was also attacked. He report were to introduce police officers (OBJETSOCIAL) as specified in the Civil Code then fired tear gas, before he drew his gun into all the high-risk clubs; reinforce and in law. The association must have a and, amid scenes of chaos, one fan was the importance of dialogue with all the governing body to be legally formed. shot dead and another seriosuly injured. supporters’ associations; promote good The association must have a name that The fan who was shot, was linked with supporter practice, especially with the complies with legal requirements. The seat the "OULOGNE"OYS, a group of fans who young; prohibit barriers in stadia; create of the association may be chosen freely. The modelled themselves on British hooligans a common European file of those people aim (corporate purpose) of the association in the 1980s. The groups name comes banned from stadia; establish penalties of must be legal. This purpose determines from the Kop of Boulogne (KOB), one of 3 year stadium bans enforceable by law the legal capacity of the association. the two main home fan stands at the Parc and allow the option to accept a one year An association is a non-profit entity. In des Princes. voluntary ban18. particular, members of the association may

%8%#54)6%35--!29 &RANCE not share the benefits of the association administrative control on the transfer of Government to open up the market and to nor any assets left over after its winding shares. Additionally, unlike the SAOS, modify the Act No. 84-610 of 16 July 1984, up. Any profits are paid into a fund which the SASP can pay dividends to its which, pursuant to article 13, prevented is not limited by law and which is used shareholders. Since the law n° 2006- French limited companies (SOCIÀTÀ to accomplish the objectives of the 1770 of December 30 1999, SASPs, like ANONYME (SA)) which were operating in association and create a financial reserve. SAOSs, can go public. In these cases the sporting arena from raising capital Formally, the association acquires legal authorisation clauses providing for the from members of the general public. personality after having been registered transfer of shares must be included in the This essentially meant that they could at the prefecture and having published by-laws. not go public or float their companies on this registration in the Official Journal’21. the French Stock Exchange. As a result, · Main Shareholders the French government changed the · La Société Anonyme à Objet Sportif law – doing so by altering that relating to (SAOS) – The Public Company for Sports Most large corporations sold their shares the development of employee-sharing in French football clubs 20 years ago. schemes, and various economic and An SAOS aims to preserve the sporting However, there have always been some social provisions – specifically Article spirit. It does not allow dividends to be cases in which the relationship between 68 of Act 2006-1770 (dated the 30th shared among its board of directors, and these companies and the football clubs December 2006), which lifted the ban and the sporting association that establishes has been quite old. The origins of French allowed sports companies to go public26. it holds at least 33% of the shares. football demonstrate that some clubs This move had no relation to any have had a very close relationship with strategy – government or otherwise – for k4HIS SORT OF COMPANY WAS CREATED BY certain corporations, i.e F.C. Sochaux was increasing supporters’ involvement in the THE,AWOF*ULY4HISCOMPANYlS founded by Peugeot, as both entities were ownership of clubs. Both of the previously SHARESAREFORMEDOFNOMINATIVESHARES founded in Sochaux-Montbéliard. Further mentioned clubs became listed in 3INCE THE LAW N‡   OF  evidence for the link is the fact that the order to attract investors to finance real $ECEMBER  BEARER SHARES MAY BE club was initially created exclusively for estate operations – predominantly new ISSUED IF THE COMPANY IS PUBLIC 3OME Peugeot employees. A similar case is stadia. Where Olympique de Lyon was OF THE SHAREHOLDERS ARE DETERMINED BY the link between A.S. Saint-Étienne and concerned, only 10% of the shares that LAW !RTICLE ,   OF THE 3PORTS #ODE Casino (a supermarket chain). However, were floated in the stock exchange were PROVIDESTHATTHESPORTSASSOCIATIONTHAT since 1991 the company profiles have available for supporters, and the other CREATES THE SPORTS COMPANY MUST HOLD changed and the size of the companies 90% of the listed shares listed were aimed AT LEAST ONE THIRD OF THE CAPITAL AND OF has increased, according to the volume at professional investors. VOTING RIGHTS AT THE GENERAL MEETING !S of the business, which has resulted in ARESULT NODECISIONTHATBELONGSTOTHE powerful stakeholders entering into EXTRAORDINARY GENERAL MEETING CAN BE football23. TAKEN WITHOUT THE CONSENT OF THE SPORTS France has no tradition of fan ASSOCIATION ownership. Initially, the clubs were mainly 4HEPORTIONOFTHECAPITALMUST funded by the government and in the BEMAINTAINEDTHROUGHOUTTHELIFEOFTHE 1960s football was completely linked to COMPANYANDTHUSIFTHENUMBEROFSHARES local government, the so called MUNICIPAL ISSUEDISINCREASED THESPORTSASSOCIATION FOOTBALL. This trend ended when the ‘LOI MUST RECEIVE A THIRD OF THE NEW SHARES "UFFET’ came into force in 1999, which 4YPICALBY LAWSOFSUCHCOMPANIESPROVIDE forbade members of local Councils being FOR AN AUTHORIZATION OF THE COMPANY IN part of the clubs’ board of directors24. CASEOFTRANSFEROFSHARES3UCHATRANSFER However, the state has continued to have ALSOENTAILSADDITIONALLYANADMINISTRATIVE an important role despite this law and AUTHORIZATION 4HE NECESSARY PROCEDURE it intervenes in football through the the IS DESCRIBED IN THE DECREE N‡   OF National Board for Management Control *ANUARY4HE0REFECTCONTROLSTHE ($IRECTION .ATIONALE DU #ONTRËLE DE TRANSFERANDITSCOMPLIANCEWITHTHELAWOF 'ESTION (DNCG)), a semi-independent *ULY)NPARTICULAR THECONTROLONLY watchdog body. One of the DNCG’s duties APPLIESTOTHELEGALITYOFSUCHATRANSFER is to control the takeover of football clubs, NOTTOTHETIMELINESSOFACCEPTINGANEW which it does by assessing the solvency SHAREHOLDERl22 of the corporations that aim to buy a club, while at the same time verifying · La Société Anonyme Sportive the origin of the funding to avoid money Professionnelle (SASP) – The Public laundering25. Company for Professional Sport Generally, there are no shares in French football clubs available to the This type of company was created by public, although there are two exceptions: the law n° 99-1124 of December 28th Olympique de Lyon and F.C. Istres. 1999. It was introduced to attract private This situation is due to the floatation of investors, as the association that creates clubs being prohibited in France up until this company does not necessarily hold December 2006. At this point the European a third of the capital and there is no Commission instructed the French

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? &RANCE Distribution of Shares in the Clubs According to the Type of Shareholder The Loi 1901 does not oblige the associations to follow any specific Private Clubs Associations management system. Consequently, Shareholders sporting associations have the freedom to Auxerre 0 % (9 shares) 100 % organise themselves in the way they see Bordeaux 99.83 % 0 % (10 shares) fit, provided they have a board of [directors Le Mans 100 % 0 % or equivalent body]. The by-laws may also Lens 100 % 0 % establish the persons or bodies that can act Lille 100 % 0 % on behalf of the association, with respect Lorient 97.9 % 2.1 % to third parties or the representation of the Lyon 100 % 0 % association in court27. Marseille 100 % 0 % (1 share) Monaco 51 % 49 % · The Société anonyme à objet sportif Nancy 93.36 % 6.64 % (SAOS) Nantes 97 % 3 % Nice 100 % 0 % (3 shares) The association can appoint one or more Paris 100 % 0 % (3 shares) permanent representatives to the board Rennes 100 % 0 % with a least one third of the voting rights, Saint-Étienne 90 % 10 % and thus maintain a real power over the Sedan 100 % 0 % (1 share) management of the company. Members of Sochaux 100 % 0 % (1 share) the Board of the SAOS can only be paid by Toulouse 99.60 % 0.40 % the company if they held a work contract Troyes 99.48 % 0.52 % before their election and if they continue Valenciennes 99.96 % 0.04 % their work contract at the same time as their mandate as administrator. They 06/07 05/06 04/05 03/04 cannot be paid by the association’28. !SSOCIATION3UPPORT < 33 % 18 clubs 16 clubs 15 clubs 14 clubs · The Société anonyme sportive 33 – 50 % 1 club 2 clubs 2 clubs 0 clubs professionnelle (SASP) > 50 % 1 club 2 clubs 3 clubs 6 clubs ‘The director of the association that created 0RIVATE3HAREHOLDERS the SASP cannot simultaneously be the < 33 % 1 club 2 clubs 3 clubs 3 clubs president or a member of the board of 33 – 50 % 0 clubs 0 clubs 0 clubs 3 clubs administration, the president or a member > 50 % 19 clubs 18 clubs 17 clubs 14 clubs of the supervisory board, or a member of 3OURCE$.#'COMPTESDESCLUBSPROFESSIONNELS  the directorate of the company itself29. However, he can be a general director or delegate general director. The SASP follows 2.2. Governance Structures several rights, which include the right to the general rules on the composition of request, in court, that the associations’ the board of [directors or equivalent body] · Associations Sportives purpose or promised services be fulfilled, or the supervisory board. The sports the right to acquire information on the association does not necessarily have The sporting associations (ASSOCIATIONS management of the association, and finally permanent representatives within these SPORTIVES) are doubly bound, as before requesting that the association’s basic bodies. Members of the directorate may they can be legally constituted they have functions (such as General Meetings) are receive remuneration for their services, to comply with both the general rules of fulfilled as required in a regular manner. although the founding association cannot the Loi 1901 and with specific sporting Associations must function pay this remuneration’30. rules. Hence, to become authorised by the democratically, which implies that every Most of the football clubs in France governing body, and thus entitled to state member has the right to participate in actually do follow the traditional structures, subsidies, they must adopt by-laws that the General Meetings, and hence must with a board of directors and a PDG, guarantee the democratic functioning of be invited to them. The by-laws of the which often combines the role of CEO and the club, transparent management, and association provide the General Meeting general manager. This concentrates the the equal access of men and women to the with its powers and they also define its decision-making power within a few hands management bodies. In the case of football composition. Hence, the by-laws can or even just one person, which in turn they must also become affiliated to the provide a representative system for the explains the perception that the French FFF before they can take part in the sports delegates if the association has many clubs are family run. According to a 2006 competitions. The affiliation procedures members. However, the General Meeting survey, 66% of French clubs are owned are organised by each sports federation has full sovereign power if nothing has by just one individual. This means that the depending on the particular type of sport. been stipulated to the contrary and, in stakeholders do not have a particularly The internal organisation of the particular, the General Meeting can vote on strong involvement in the decision-making association is governed by by-laws and changes to the by-laws. The by-laws can process. internal regulations, which are decided at also determine voting rights, although the The relationship between the sporting the Annual General Meeting. Additionally, rule is one vote per member if nothing is association and the company it forms the association’s members are entitled to defined to the contrary. is defined according to a convention,

%8%#54)6%35--!29 &RANCE which is approved by the Préfet of the dates, and its independence and technical 10 years in France the chairmen of district where the sports association competence. The DNGC requires financial several clubs’ have been prosecuted has its headquarters. This agreement information to fulfil its task, and clubs and then sanctioned, whereas in must refer to issues such as the sports must provide accounts at the agreed time, other countries the rule of law has not grounds and buildings used, branding, signed by the LFP and the FFF otherwise been applied to football as rigorously. and the timeframe of the agreement31. they will face sanctions. Clubs in debt are The president of the LFP claims that The supervision of accredited companies therefore subject to severe control of their establishing a European DNCG would is jointly carried out by the LFP, the FFF expenditures. All financial statements increase the competitive balance among (and national technical direction), regional must be handed to the LFP for ratification, different European leagues. However, offices of youth and sport (and where as long as they conform to the legal at the same time the French government necessary district offices for youth and obligations and regulations of LFP and has launched a set of measures, regarding sport) and the National Education Board FFF. The court of Appeal holds that non- taxation of football players wages, which (local education authorities). ratified statements should be considered have been previously implemented by void, which helps to guarantee the DNCG other European governments, so as 2.3. Financial Regulation – Licensing transparency of information and hence to enhance the financial potential of System keeps its analyses relevant34. their clubs36. The system that controls the financial Controlling the dates of fixtures ensures Andreff states that, until recently, situation of French football is reputed to be a preventive remit. Indeed, determining the financial crisis in French football one of French sport’s greatest regulatory which sanctions should be applied (such was caused by the clubs’ ‘soft budget successes. as banning or limiting recruitment or constraint’, which he argues by quoting a As football clubs have become more imposing a salary cap) on clubs that in debt, senators report from June 200437: commercial, it was judged to be necessary even before the transfer window, ensures to ensure that they followed stringent preventive action that respects players´ k4HE SENATORlS REPORT POINTS TO THREE financial procedures so as to avoid financial rights. Financial forecasts are required COMPLEMENTARY FACTORS FOR EXPLAINING irregularities. “Any national association to achieve this. However, the DNCG has üNANCIALTROUBLES&IRST AWEAKGOVERNANCE that creates a professional league must, at already relegated several clubs, so this STRUCTUREATBOTHTHELEAGUEANDTHECLUB the same time, create a supervisory body factor acts as a deterrent to other clubs. LEVELSISADRIVINGFORCEFORLAXMANAGERIAL in charge of legal and financial control over According to Andreff, “French football, üNANCIAL BEHAVIOUR RELUCTANT DATA the sports clubs, and for ensuring that they when compared to other European football DISCLOSURECHARACTERISESWEAKGOVERNANCE meet the conditions for qualifying in the leagues, is no more free from financial STRUCTURES 3HAREHOLDERSDONOTEFüCIENTLY competitions organised”32. Hence, the FFF wrong-doings, such as false invoicing, SUPERVISE MANAGERS IN A WEAK CORPORATE and LFP created the National Board for hidden honoraria, fake club accounting GOVERNANCE STRUCTURE AND THIS LEADS TO Management Control ($IRECTION.ATIONALE (despite DNCG audits), embezzlements, A SECOND FACTOR SHAREHOLDERS BEHAVE AS DU#ONTRËLEDE'ESTION (DNCG)), a semi- rigged matches and referee bribing, the NON PROüT SEEKING INVESTORS PATRONS OR independent watchdog body whose status use of ‘under the counter payments’ when TYCOONS4HISBEHAVIOUROBVIOUSLYSOFTENS results from the agreement between the transferring overseas players, fictitious THE CLUBlS BUDGET CONSTRAINT AND RELAXES FFF and LFP. It comprises a committee player transfers hiding undisclosed money üNANCIALDISCIPLINEOVERMANAGERS!THIRD that controls professional championships, transfers, and abuse of social benefits”35. FACTOR IS THE ARMS RACE AMONG FOOTBALL a committee that controls federal The Affmainluences difference Ligue is that 1 over the past CLUBS EAGER TO ENROL THE MOST EFüCIENT championships and an appeal committee. PLAYERS WHICHFUELSWAGEINČATION3UCH The DNCG is an auditing body Affluences8500000 Ligue 1 established under the umbrella of the LFP. Its main role is to assess the financial and 22500 legal status of the French clubs and can 8000000 prevent the recruitment of new players, 22000 audit payrolls and, as a last resort, declare 7462060 7649400 8091720 8186340 8288180 21500 that the failing clubs should be relegated. 7500000 They also play a role in the acquisition of 21811 21000 stakes in French football clubs, taking 21543 7000000 21294 into account the solvency and origin of 20500 the investors before issuing the required approvals. The DNCG has three main 6500000 20130 20000 aims: it provides the clubs with information and technical assistance, it conducts 19500 investigative hearings into clubs and 6000000 19637 on-the-spot inquiries, and it institutes 19000 sanctions through sporting relegations, bans on promotion or recruitment, or 5500000 18500 2002/03 2003/04 2004/05 2005/06 2006/07 through limiting a club’s payroll33. The DNCG has proved itself to be quite Cumul effective, which is due to both the credible threat of sanctions it can impose on clubs Moyenne and three other determining factors: its 3OURCE,&0 control of information, its control of fixture

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE?

&RANCE A SELF REPRODUCING PROCESS EXPLAINS THE were not as high as they could have been the late 1960s, the French established UNIMPEDED NOMINAL WAGE BILL )NCREASE expected. The game in France certainly associations and held a vested interest in ANDREQUIRESAPROPORTIONALGROWTHINNEW lacks the dominant cultural role that it has supporting their teams and in the life of their SOURCES OF üNANCE )NDEED TOP &RENCH in other countries. clubs, but at the same time they accepted CLUBS ARE DRAWN TO SPENDING MORE THAN French industrialism grew through the occasional use of violence50. The THEIRBUDGETTOATTRACTEFüCIENTPLAYERS AND the establishment of medium–sized firms average age within these groups ranges AFTERWARDS THEYBEGPATRONSANDTYCOONS in medium-sized towns, but it was in between 15 and 30 years old. A main TOBAILTHEMOUTn38 the relatively small towns where French feature of the Ultras is their wish to remain football actually expanded, which in turn independent from their clubs. Additionally, 2.4. Financial Performance set a natural limit on the spread of the their attitude suggests a ‘CONTRE POUVOIR’ The French Ligue 1 increased revenue by game47. Hence, French football has been philosophy, which means (in part) that €62m (7%) in 2006/07, the lowest growth hampered by more influences that are they occasionally consider violence to of any of the ‘big five’ leagues. Deloitte difficult to define than merely the structure be a suitable means of attracting media reports Ligue 1 as the smallest of the ‘big and social significance of their clubs. coverage. This is because their experience five’ in revenue terms, more than €350m According to Patrick Mignon48, those of positive initiatives, like the European behind any other (excluding the temporary who followed football in France during the campaign against racism that was reduction in Serie A revenues 2006/07)39. last three quarters of the previous century launched by Football Against Racism in In the 2006/07 season Ligue 1 reported behaved more like simple spectators, Europe (FARE), is that they do not attract operating profits of €37 million, which was rather than fervent supporters. The low media attention, as the media prefers to the first time the Ligue 1 had achieved attendance rates prior to the 1980s support report their bad behaviour instead. a profit since 1999/200040. In 2006/07 the argument that domestic football simply However, except for brief periods during operating profits fell to €23m, compared to did not enjoy any particularly strong Saint-Étienne’s rise, and Platini’s success €250m in the Bundesliga and €141m in the support from French society. Hence, at the 1984 European championships, Premier League41. football clubs are closely governed without French football continued to be unsure Deloitte predicts that the new four year active involvement by supporters. There of its own potential, a state of affairs Ligue 1 broadcast contracts from 2008/09 is no tradition of fan involvement in the persisting until the French World Cup worth an average of €668m per year management of French football clubs. victory in 1998. Until then football had still (compared to the current €600m), ‘will In the mid-1970s the sporting success not become the undisputed national sport, result in a slight increase in average annual of Saint-Étienne provoked the interest of even though in the 1980s a more exclusive rights values, although there is no prospect the French supporters. Some supporters circle of football club owners would bring of France bridging the cap to the other ‘big had previously achieved some recognition, in foreign stars and, finally, a symbiotic five’ European leagues in the short term’42. but this was nothing compared with relationship with television networks had Ligue 1’s largest source of revenue comes the VERTS, which was the nickname of developed51. from broadcasting, which represented Saint-Étienne’s supporters. Indeed, they The FFF launched an initiative during 58% of total income in 2006/0743. Ligue 1 personified the role of the ‘twelfth man in the 1998 World Cup in France, which aimed continues to generate the lowest matchday the field’. Other supporters progressively to join all the national team’s supporters revenue of the ‘big five’ leagues (€139m became inspired by foreign supporters’ (LES BLEUS) under a sole association. compared to €344m of La Liga), with the groups and from the supporters of Saint- However this has not gained momentum. lowest matchday attendance of the ‘big Étienne. This led to many ‘Kops’, which was Some educative initiatives, such as the five’ (21.4m) and the lowest ticket prices, a name taken as a tribute of the famous ‘génération supporters’, which is promoted which cost an average of €17. Kop of Liverpool FC, being formed in the among the junior French supporters’ clubs, As in Italy, stadia in France are often stands where the noisiest local supporters were launched by the FFF and the FAS owned by the local council, which makes meet. After the mid-1980s the French during the last World Cup in Germany in them lag behind in terms of their ability supporters’ movement had changed and 2006. These were launched to try and set to produce matchday revenue. However, the presence of supporters in the stands up a supporters’ club for the national team, plans for new stadia (largely publicly increased significantly49. Hence two types although even now such a club has not funded) have been announced at several of groups, depending on their behaviour, been established. French clubs44, which according to developed amongst the young supporters. French supporters seem to be more Deloitte, could help to close the gaps to the One type of supporters’ group was interested in their national team, rather other big leagues in the future45. inspired by the English model of informal than their local football clubs, and there Furthermore, the tax environment is gangs, focused on violence, very secretive, are various possible reasons for this. It considered to be a clear disadvantage and who call themselves ‘HOOLIGANS’, has been mentioned that the economic where the French clubs are concerned, ‘CASUALS’, ‘HOOLS’ or ‘INDEPENDENTS’. Their control established by the DNGC and the with a real “tax gap” existing between them involvement in supporting the team is severe tax system have contributed to a and the other four big European leagues46. moderate and they seem to show even general drain of talent from the domestic less interest in the club’s life; they are rarely teams to clubs outside of France. Thus, interested in the manager’s team selection the most talented French players, who 3. Fan Culture or the players’ performance. This type of have been educated by the French training group does not possess the legal structure system, tend to play abroad to benefit from Football may be the number one sport in of an association. the significantly higher wages available France, but it does not dominate as there The other type of group followed their outside of the French tax system. Another are other main sports such as rugby and Italian counterparts and called themselves factor in the comparatively low support for cycling. Even after the World Cup victory ‘5LTRAS’. In a similar manner to the Italians, local football clubs might be the absence of in 1998 the attendances in French football who organised themselves in CALCIO during local derbies. The French League has only

%8%#54)6%35--!29 &RANCE recently allowed two professional clubs to the philosophy of Marseillais support. This to be the twelfth man of the football team, co-exist in the same city. Hence, derbies source of funding was supplemented with and indeed at RC Lens no player is allowed tend to be regional rather than local; a few other monies from the regional government to wear a shirt with the number 12 on it. This examples being Saint-Étienne / Olympique to channel into social projects related to idea was suggested by the club’s current Lyonnais, Lens / Lille, and Bordeaux / the supporters’ movement. president to pay tribute to the fans for their Nantes. However, the biggest rivalry in The political parties consider these support of the team, and is something that French football is between Olympique eight supporters’ associations to be some other clubs are adopting. de Marseille and Paris Saint-Germain, at extremely significant organisations, and opposite ends of the country52. before elections they hold meetings with 3.2. National Supporters’ Associations them due to the huge amount of Marseillais 3.1. Supporters’ Groups at Clubs citizens under their influence. Additionally, 3.2.1. La Fédération des Associations French supporters’ clubs are generally the supporters’ associations in Marseille de Supporters du Football Français organised as associations, who frequently have an informal relationship with the (FAS) – Federation of French Supporters’ follow the Loi 1901, although some are DE club’s board of directors. Associations FACTO groupings. It has been reported that However, this phenomenon cannot be The FAS is the only national supporters’ traditional supporters’ associations tend to found anywhere else in French football federation that is recognised by the football be integrated into their clubs, are members culture. Some of the supporters of the other authorities, the government and other of the FAS and cooperate with the clubs. clubs do want to establish similar initiatives, public institutions and was established They are even represented in the National but it has so far not been possible to initiate as an association according to the Loi Commission at the LFP. Ultras on the other a similar project anywhere else. 1901 in 1978. However its role has only hand, tend to be independent from the club become relevant since it was integrated they support. · Paris Saint-Germain into the Ministry of Health, Youth and With respect to the campaign against Sport in 2005. Their aims do not relate to football violence, 48 supporters’ clubs Paris Saint-Germain (PSG) is a relatively management issues, and they have only have united within the supporters’ national young club, founded as it was in the early recently shown any interest in taking part coordination group in the campaign against 1970s. The club used to see average in such questions55. football violence. In addition, some football attendances of some 40,000 at the Parc FAS members are official supporters’ clubs do entitle certain supporters’ clubs des Princes, however this has recently associations (i.e. those recognised by to sell some of the seats for the matches, been decreasing due to bad results. clubs playing in Ligue 1, Ligue 2 and with the aim of increasing their involvement PSG has, in accordance with its the national championships). Initially in order to seek to limit such violence. tradition, established a written agreement FAS only recognised one association However, even if supporters’ groups do with its supporters, outlining the terms per club, but as part of their aim to play an active role in fighting football and conditions of their relationship. This increase supporters’ involvement they violence inside and outside the stadia, convention established both the rights now accept more than one per club, with they are generally not associated with the and responsibilities of both parties. The particular focus on those who implement actual management of the clubs. Football agreement was reached in January 2005, educational youth programmes related club directors seem to have an ambivalent largely due to the mediation on the part of to supporters. A supporters’ association attitude, as they consider fan support to Mr Patrick Mignon - formerly responsible must be legally constituted, reject violence be like the ‘necessary twelfth man’, yet for supporters’ issues at the LFP - between or discrimination, and sign ‘LA CHARTE DU they also believe that the decision-making the club’s directors and the supporters’ EMEHOMME’ before they can become a power should be the sole province of the associations. member of FAS. clubs’ directors. Their most fervent supporters are The average age of members of such mainly Ultras, divided along largely racial associations is often quite high, and · Olympique de Marseille lines in two different sections of the ground they are not connected to the Ultras or – the far-right nationalists ‘Kop of Boulogne the independent groups of fans as they The most pertinent example of supporter (KOB)’ behind one goal and the multi- consider those groups to be violent and involvement at a club involves Olympique ethnic ‘Tribune d’Auteuil’ behind the other. not constructive. Official supporters’ de Marseille, where the Ultra groups gained Much of the hooliganism in French football associations tend not to criticise the clubs’ a unique position at the club. Bernard has been blamed on those groups. managers or players, in the guise of wishing Tapie, during his term as club President to maintain a close relationship with them. in the 1980s, effectively bought sporting · RC Lens Their vision of the club is very consensual, peace by providing a source of funding for with everybody cooperating and striving in the eight supporters’ associations. This Lens is an industrial city that has a strong the same direction. They receive funding was achieved by providing them tickets, tradition of football; its club represents from the clubs for preparing banners for which they could distribute among their not only the city, but the whole region. the stadium, and they also receive funding affiliates (circa 28,000) who could then The club’s supporters traditionally come from the Ministry of Health, Youth and resell them. The season tickets, bought from a mining background, due to the Sport for the development of educational for €100 each53, could be sold for €130, industrial base of the region, and their rival programmes, such as fan projects that meaning that this concession provided the supporters come from the local club of aimed at young people. eight supporters groups54 with revenue of Lille, a more commercial and larger city to Because of their philosophy, other roughly €640,000 pa. This income allowed the north. supporters’ groups do not see these official the supporters to buy a venue in the RC Lens promoted the concept of the supporters’ associations as legitimate suburbs of Marseille, where they developed indispensable role of the supporters as the representatives of the wider fanbase. a social project to integrate youngsters into ‘twelfth man’. Supporters are considered Moreover the FAS is closely linked to the FFF,

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? &RANCE and therefore not considered independent. FAS takes place through a common programme called ‘GÀNÀRATION SUPPORTERS’. The The FAS is constituted in accordance programme was established during the World Cup of 2006, with the aim of spreading with the Loi 1901 and so has to follow support for the French squad amongst youngsters, but it has continued working in an democratic principles regarding its educational context with young supporters from four Ligue 1 clubs. governance. The management role is assumed by its council, which is made The French Football Authorities (FFF/LFP/LFA). up of elected members appointed at the The FAS has established a partnership for the pursuit of common, achievable, strategies AGM. The weight of each supporter’s with the LFP, the FFF and the amateur football league (ligue de football amateur (LFA)). association’s vote in the FAS is determined The LFP allows an FAS representative to be member of their commission on stadium by the amount of members that each security. They also have regular dialogue, but their main concerns in this area are related affiliated association has. The downside to the fight against violence and racism, and the hosting of supporters at away matches. according to some is that it favours the associations with more members. The National Union of Football Referees (UNAF). According to the Loi 1901 at least one FAS signed a charter in January 2007 to promote activities for developing supporters’ third of the members must renew their respect towards referees. confidence in the board at each AGM56. FAS’s board of directors meets at The French Association for a Sport without Violence and for Fair Play (AFSVFP). least once a month in its headquarters at The FAS is a constituent member of this association, establishing a long-term the FFF, even though their administrative partnership. Most of AFSVFP’s campaigns relate to the fight against violence, and the headquarters is in Le Mans. At their AGM promotion of educational values, and training for the presidents of supporters’ clubs. they discuss relevant issues of the day They have campaigns targeted towards young people. and facilitate workshops on issues such as the hosting of away supporters and · La Charte du Supporter (Supporters’ charter) strengthening links with supporters in other countries. They have good relationships FAS has established a supporters’ charter, which was agreed by the LFP, establishing with the AFEPE from Spain, Fan Coaching general guidelines and obligations for supporters. It has been adopted by several clubs from Belgium, and with the Danske Fotbold and also signed by leading fan representatives59. Fanklubber. All of them work closely with initiatives launched by the Council of Article Europe, which aim to explore the potential implementation of a Pan European 1 The supporter should enjoy every sporting encounter as a privileged moment, organisation in addition to the Football a festivity, irrespective of the importance of the match. Supporters International (FSI)57. In 2005 this federation became integrated into, and 2 The supporter complies with the rules and the spirit of football. funded by, the Ministry of Health, Youth and Sport, subscribing to an annually 3 The supporter respects his / her opponents as he / she would him / herself. renewable agreement. They have been able to employ two members of staff as a result 4 The supporter accepts the decisions of the referee. of the different fan projects they submitted: one secretary and one development officer. 5 The supporter remains dignified in victory and defeat, aware of the influence of Their development strategy has resulted in his/her behaviour on the public. an impressive network that has increased rapidly, through establishing various 6 The supporter’s behaviour should be above reproach during away journeys. agreements with different institutions, both public and private58. The institutions that 7 The supporter joins an acknowledged fan club. He / She is a holder of the have agreements and work with FAS are: national supporters’ card.

Ministry of Health, Youth and Sports. 8 The supporter stands by his / her club at all times and in all places. In 2005 both institutions signed a Convention of Objectives that reflected 9 The supporter respects the officials, the players, the club and the referees. the Ministry’s aim of assisting FAS’s developmental strategy. The French 10 The supporter behaves like a true ambassador of football by helping to enforce government provides funds for projects the principles as mentioned above. pursuant to an agreement which is renewable on an annual basis pending an assessment of outcomes. · La Charte d’Adhesion du Club de Supporters a la FAS (The Membership Charter of the Fan Clubs of the FAS) Fondation du Sport (Sport Foundation). The Sport Foundation is an organisation ,A#HARTEDU3UPPORTER lays out the role and responsibilities of those groups who are privately funded by 17 corporations and members of FAS. The charter defines for example obligations of clubs, the LFP and promotes social action through sport, FAS towards fan clubs, such as the appointment of fan liaison officers and the right of mainly involving organising campaigns co-determination of fan club representatives in each official fan club of every club60. against violence which targets young Furthermore, the FAS acts as a mediator where conflict arises between the supporters’ supporters. Their main contact with the groups and the relevant clubs.

%8%#54)6%35--!29 &RANCE

Article · Union Nationale des Ultras Agreement

1 Every fan club that is regulated by the Loi 1901 should meet the following conditions: Fundamental principles of the – approval by the association of the club (SAOS, SEM, SASP…). organisation: – agreement with the FAS. – approval by the Ministry of Health, Youth and Sports. • Respect for the Ultra movement. To raise its profile and to be an official 2 The objective of a fan club is to help the club by making a voluntary contribution representative group, whether classed to the diverse actions of the club. These include supporting the atmosphere and as an association or not. participation in security actions during matches at its home ground and helping • Respect of ethics. Those groups that to fight against violence in and around stadia. do not respect the organisation’s ethics 3 The fan club should be obliged to include a post for a representative of the ‘club shall be expelled. fanion’, the official fan club of the club of reference, in its administrative board. • Solidarity between the groups, as was Under the same terms, it’s desirable that the ‘club fanion’ also nominates a fan club seen at the time of the death of Julien manager. Quemener, the Paris Saint-Germain fan who died in a racist incident. 4 The fan club is required to give an account of its activities to the “club fanion” and • Individual respect in the collective the FAS at the end of each season. interest, i.e. to forget disputes when 5 If the fan club shows a profit by the end of the season, through the sale of tickets, working together. paraphernalia, or the organisation of away journeys or other diverse events, • Independence of mind. Not to be the profit gained should only be used for: the improvement of the fan club, the influenced by the leading authorities. purchase of season tickets, donations, the organisation of activities that conform • Condemnation of discrimination. to the statutes of the fan club, and, in general, additional money should be The basis of the organisation is: contributed to the ‘club fanion’. • Fight for affordable seats. 6 In the case of non-compliance with article 5, the ‘club fanion’ can ask the FAS • To fight for the groups’ freedom of for a general assembly of the fan club to decide on the situation. In this case, the expression. FAS could make the decision comply with its statutes, including the declaring of • To support and encourage dialogue expulsion of the fan club. between the clubs and the supporters. 7 The ‘club fanion’ cannot impose any actions on its own fan clubs for non- • Rejection of personal seats. compliance with its statutes. • To have consultation with the groups on any decision that concerns the 8 In case of conflicts between the ‘club fanion’ and the fan club, a mediation supporters (for example, rejecting any meeting between the two clubs will be organised, together with representatives charter published by the LFP). from the FAS, to settle the dispute. • Right of the groups to have the possibility 9 The FAS holds a seat at the administrative board of the LFP. The LFP of being present when the boards of acknowledges the FAS as the representative national organisation of the fan club. directors of the clubs and the leading The LFP suggests that a fan club should be approved through the ‘club fanion’ authorities of football meet. according to the view of the FAS. • Right of the groups to use any material or animation in the stadia, and that 10 If the behaviour of the fan club’s members should be considered as incompatible the clubs and the league facilitate any with its statutes and the objectives pursued by the FAS, than a commission will be work of animation (for example, sound set up by the FAS to sanction the whole fan club, which may include expulsion. systems within the national French stadium or flags in any other city) 3.2.2. Coordination Nationale des Ultras – National Ultra Group • Decent facilities for supporters outside of The French Ultra movement has made several attempts to establish a national body to the stadiums. defend their interests, with the first, called the “Union Against Repression” (UNIONCONTRE LAREPRESSION), being attempted in 2003. This movement arose as a reaction to what those 4HEYDECIDEDTODISTRIBUTETHETASKS groups perceived as a lack of a right to express themselves. The LFP prohibited, through ASITFOLLOWS their by-laws, banners at stadia that were considered offensive. • A representative from each city will be The Ultra movement feels it has experienced a media campaign of discredit, which is focused on the legal actions. not in accordance with the actual number of incidents that are related to French football • Eight representatives from the four supporters61. Much of it has been blamed on the incidents in and around Paris’ Parc des groups present will commit themselves Princes in November 2006. to the general management of the organisation. • David of Magic fans from Saint-Étienne will be in charge of national coordination, and will relay information to all of the French groups. • The representatives of the Ultramarines from Bordeaux will work on the official statements and minutes of the meetings.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? &RANCE

Those meetings also resulted in the 3.3. Dialogue with the Clubs parties to establish any mutual respect, preparation of a manifesto, based on The relationship between the supporters and especially as the conflicts are exacerbated supporters’ rights and directed against the clubs is mainly restricted to those relating by generational and social differences. repression and the problems of “modern to security and atmosphere, because of the football”. Several aims outlined in the traditional lack of supporter involvement 3.4. Dialogue with the Authorities manifesto overlap with those of supporters’ in management of the clubs. In most of the Where dialogue between the football trusts in the UK. The Ultra groups we have clubs the main point of contact between authorities and the supporters is concerned, been in contact with want to be involved the supporters and the owners / board of there is a very clear difference between the in decision-making processes, where it directors takes place through the security two main types of supporters’ groups. There concerns them. However, due to their Ultra officers, though on rare occasions clubs is a very fluent relationship with supporters’ mentality, they wish to achieve this without any provide a separate officer concerned with groups affiliated to the FAS. A representative involvement in the ownership or governance supporter affairs. sometimes attends meetings between the structures of the clubs they support. Clubs do recognise some supporters’ FAS and its affiliated groups from the sports groups (the ‘official’ groups) and some ministry. On the other hand, there are the of them are financially dependent on the Ultra groups who have no seats on any of 3UPPORTERSl2IGHTS clubs, which results in a close alignment of the committees. They do have meetings, but 1) Supporters groups should receive interests. In some clubs, where the President in their case the government representative acknowledgment from the clubs. chooses to do so, dialogue takes place belongs to the Ministry of Social Affairs and 2) Discussion between the supporters, spontaneously and frequently62, as well as the meetings often relate to security issues. the clubs, and the leaders should through different channels, e.g. informal These groups are against what they claim be improved and encouraged. For meetings or even internet forum chats. to be the excessive commercialisation of instance, there should be consultation Ultras’ relationships with their clubs are football, which they call ‘modern football’. with the supporter’s on all the more complex, in that they try to be both ‘bad’ The LFP has also established contact decisions that concern them, whether and ‘good’ at the same time and a group that with Ultra groups at Ligue 2 clubs, who have directly or indirectly. does not exhibit both of these characteristics established a supporters’ coordination group 3) The right to be present at the clubs will also not be recognised as being truly ultra called ‘3/3,IGUE’. This group challenged and leaders administration counsel by its peers. They have to function as a small the LFP’s decision to change match fixtures, (board of directors). It is worth noting enterprise, whilst at the same time keeping traditionally played during the weekends, that this desire is not related to underground. Thus, their style of support to Fridays and Mondays for the benefit ownership, as they want to have a seat mixes order and organisation with chaos. of television. This change had negatively as an independent representative Club managers respond to the affected the Ultras, as they had experienced and not as a consequence of being complicated attitude of the Ultras by holding serious difficulties in following their teams to shareowners. an ambiguous stance towards the supporters away games. 4) Freedom of expression for the in general and the Ultras in particular63, supporters’ groups, such as the although they do consider supporters to · LFP Security Commission possibility of entering the stadia be the indispensable twelfth man: the club with flags or banners, which do requires them as it needs their support, and The LFP has initiated a specific not have any political, injurious or the club is seen as ‘one big family’ of which commission of security that also deals discriminatory meanings. the supporters are important members. with supporters. The members of the FAS 5) Supporters' should be considered to However, the managers consider this also have a chair on the commission’s be a real part of football, and not simply ‘family’ to be a traditional and authoritative board, and the relationship between customers. one. Hence, the management makes the these two bodies is quite fluent. One decisions, in other words the PATERFAMILIAS64, of the most relevant initiatives that 2EPRESSION and the rest of the ‘family members’ have to has been implemented by the LFP 1) To condemn the associations’ obey decisions. and geared towards supporters is the dissolution law. The perception of the Ultras by managers ‘&RENCH#HAMPIONSHIPOF4RIBUNES’. This has mainly come about through the former’s awards the best supporters with money -ODERN&OOTBALL bad behaviour, which has aggravated the for activities that are related to support managers since it gives their clubs a bad at matches. Every week these groups 1) Fight against the clubs floating on the name and obliges them to pay fines or (tribunes) compete for points, which Bourse (stock market): fight against spend a lot of resources on security within awarded by a number of journalists and the financial influence on the clubs’ and outside the stadium. Ultras have also based on the quality of the support at direction, which results in a goal of aggravated the managers by frequently home and away games. However, the vast satisfying their shareholders and, challenging their tactics. The primary issue majority of the Ultra groups considered hence, procuring profit, often to the is that the managers and Ultras hold differing this initiative to be an attempt by the detriment of the supporters. definitions of football. Hence, the relationship league to ‘buy’ their good behaviour. 2) Preservation of the logos and between the Ultras and the managers Hence the supporters’ association of historical colours of clubs, while is generally difficult, even if it does vary Saint-Étienne, who received the prize condemning those modifications that between clubs. Ultras want to be recognised for being the best supporters of the are purely commercial. by managers, but they do not want to be championship, decided to donate the 3) A more equitable redistribution of the close to them, as they want to preserve their money to charity, thereby reaffirming their TV rights. independence, and so allow them to hold a aim of remaining financially independent critical point of view. It is difficult for the two from the football authorities65. -ANIFESTOOFTHE5NION.ATIONALEDES5LTRAS

%8%#54)6%35--!29 &RANCE 4. Suggestions 4.3 The Ultras by Supporters Direct throughout Europe. The Ultra groups are proud of their Overall, none of the groups we have spoken One of the main aims of the supporters’ independence as it allows them to criticise to seek ownership of the clubs they support, trusts is to bring long term financial the boards’ decisions, and such a critical but at the same time they do not completely stability to their clubs. However this is not perspective could not be found amongst reject the idea. Indeed, they prefer to wait a priority for the French supporters, as the traditional supporters’ groups, who and see how the situation evolves in other this role has been effectively fulfilled by rely on the grants that are provided by their countries before considering becoming the DNCG, which also exercises control clubs and with whom they have a generally involved in the ownership and governance over the approval of potential investors close relationship. The Ultras tend towards of their football clubs. in order to avoid insolvency and money being open to new ideas and they also aim laundering. to become more respected and heard by 4.4. Improving the Relationship between the boards of clubs, without losing their Supporters, their Clubs and the 4.1. Adequate Legal Structures of philosophy of contra-power. Authorities Supporters’ Groups The alarm caused by the death of the Paris Following the proposals made by the Senate The Football Club’s legal structure will Saint-Germain supporter in 2006 culminated Report, the FFF and the LFP have been determine how supporters organise in the French Senate report on football instructed to establish a dialogue with the themselves should they wish to directly supporters. This resulted in the strengthening supporters on those issues not strictly related influence their club. of those sanctions that target supporters’ bad to security issues. So far the main dialogue All professional first division clubs are behaviour, while at the same time admitting has taken place with the FAS, however we presently formed as companies by shares that the incidents were overplayed in the believe that the football authorities must (either SOCIÀTÀ ANONYME ÷ OBJET SPORTIF media. It also held that the best strategy is to follow the Senate’s recommendations and or the more common SOCIÀTÀ ANONYME combine security measures with dialogue. establish proper channels of communication SPORTIVE PROFESSIONNELLE). If the football It makes a clear difference between the use with the Ultra groups. club is registered on the stock exchange, of violence by hooligans and Ultras, and it The relationship between supporters and supporters clubs formed as associations recognises the attempts to integrate carried their clubs provides an extensive framework of the 1901 law with legal entity may buy out by associations in the Ultra movement68. for a number of preventative measures shares of this company. If the company It also advocates dialogue with the Ultra that could be taken in order to promote the is not traded on the stock exchange, groups, who are able to prevent violent positive social behaviour of fans. In general the transfer of shares requires to be incidents by exercising their own authority positive fan behaviour is influenced by authorised within the requirements of the among their members. the way fans are treated and seen by the by-laws. However, there are two main issues that clubs and the authorities and their level of As for the rights of minority are relevant to the Ultra groups. The first participation in decision-making procedures shareholders, they only have specific is that their organisations are not strictly at their clubs. Each club and supporters rights if they own or control at least 5% of democratic, as they prefer to respect the group operates differently, hence the the capital. In this case, they may contest leadership of their founders and current relationship between any particular club and the appointment of the auditor, file heads who have proved their worth, rather its supporters varies. These relationships written questions, request from a judge than appoint them through an electoral need to be tailored to the respective the nomination of an agent to convene a process. This does not mean that they environment influenced by the tradition of general meeting, ask for a management are against democracy, as their internal French supporters not being involved in club audit and so forth66. decisions are taken democratically, but governance. However, there are general, Generally, it is reported that there is no they only take into account the opinions non-conclusive recommendations we can equity available in French football clubs, of the more active members and not the make, which could help to start to establish with only a very small amount available group as a whole. Some of them think an a continuous dialogue between fan groups, to supporters. However, this perception electoral process would be a potential their clubs and the authorities. is very similar to the one in the UK, where source of internal power struggles, rather it has been shown, that the availability of than an improvement on what they have. · Fan contact officers at FFF and FLP shares often depends on financial funds The second issue concerns their worry offered; if potential shareholders would about the increasing role of the television To improve the relationship between clubs offer substantial funds, equity would be companies and the increasing dependency and fans and the authorities a certain level made available. on TV revenue, as this has strong negative of trust needs to be developed between the effects for them. Match fixtures are moved to parties. Although it is tempting to consider 4.2. Recommendations for the achieve the best TV audience ratings which immediate structural solutions to address Management of French Football Clubs67 often goes against the interests of match- the club/fan relationship, we view that as Some commentators have said that the going supporters69. Besides the role of TV, being a longer-term aim. In the short-to- presence of ‘independent administrators’ they also oppose excessive merchandising, medium term, the aim needs to be one of on the management boards of French as it is viewed as a threat to the maintenance promoting dialogue between the authorities football clubs’ would positively influence of their clubs’ traditional colours. and the fan groups (being particularly performance; similar arguments have However, several groups we have been mindful of the Ultras) on issues aside from been made in the UK, where it is argued in contact with consider Supporters Direct’s security. Given that some dialogue is that independent administrators can help feasibility study to be a good starting already taking place following the Senators’ to secure long-term success via expert point for supporters’ groups throughout report70, the logical next step of this on a knowledge, separation of decision-making Europe to build networks and increase practical level would be the appointment of and control and efficient implementation of their influence. Some groups are interested actual fan contact officers at the authorities. tailored strategies. in legal services that could be developed Fan contact officer(s) at the FFF and

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? &RANCE FLP could help to improve communication for supporters and supporters’ groups in is a more complex one, but the officer between the fans and the governing bodies, particular to communicate their concerns71. would communicate similarly with and to professionalise fan liaison officers at As outlined the ultimate aim would be to respect to the decisions made by football clubs. So far the only relationship between introduce fan liaison officers along the lines club boards and, in the other direction, the authorities and the FAS is based on of the German m&ANBEAUFTRAGTE” model communicate the needs of the fans to the security issues. Fan contact officers would into the governance structure of the clubs, board. In Germany, these officers build have broader responsibilities instead of although because of the scepticism of the relationships, not just with fans, but with dealing solely with security issues and Ultra groups (which may still be something the police, security officers, and other would have to build relationships with many that has to be contended with in the long- fan projects, and they also engage with supporters groups – including, importantly, term), this may not be the appropriate fan liaison officers at other clubs before Ultra groups. They could channel the mechanism. Therefore the groups would matches, ensuring that the fans behave in communication between such groups and need to be at least actively involved in the accordance with security guidelines. Fan the FFF and FLP and meet with supporters appointment, agreeing to the structure/role liaison officers could not only help fans to groups on a regular basis. An appointment of or job description. Any such role will require improve the image of both club and fans fan officers needs to be considered carefully movement from both sides, but it is more to each other, and provide a conduit to as the person needs to be accepted by both conceivable after a period of DÀTENTE in the involvement in the club, but they could also supporters and fan liaison officers. relations between supporters’ groups (be help the club to get to know its supporters. that between existing supporters’ groups However, the inclusion of fan liaison ·Fan Liaison Officers and ultras, or between the authorities and officers would have to be wanted by the all supporters’ groups). supporters themselves, hence the need to This is a position already in place in The longer term aim with respect to develop an initial dialogue before trying to Germany, and works well, providing a way fan liaison officers at individual clubs expand the initiative more broadly.

1 Duboys, L., ‘Atlas des Français, Grand angle sur un people singulier’, 23 A few examples are Adidas in Marseille, the television channel M6 in Editions Autrement, 2002, p.20. Bordeaux, the supermarket Leclerc in Nancy, the movie producer Seydoux 2 Charkham, P.,’ Keeping Good Company’, Oxford: Claredon Press, in Lille, the aircraft constructer Dassault in Nantes, the mass marketer 1994, p. 125. Pinault in Rennes, the caterer Catair in Toulouse, the marketing centre Call 3 Comparative Study of Corporate Governance Codes Relevant to the Center Alliance in Saint-Étienne, and the software editor Cegid in Lyon. European Union and its Member States, Internal Market Directorate 24 Interview with P. Mignon, Paris, February 2008. General, 2002, p. 3. 25 We have recently (2007) witnessed the DNCG imposing a ban on a Canadian 4 Data taken from www.euronext.com (pharmaceutic enterpreneur) whom aimed to buy Olympique de Marseille 5 For further information about the evolution of corporate governance in without enough solvency and transparency about the origin of its funds. France, see Miltiadis, P., ‘The Reform of corporate governance in France’, 26 ‘Public listing’, information taken from the website of the French Ministry of Munich Personal RePEc Archive, 2006. Sports and Youth. 6 ‘Raising the Bar – Corporate Governance in Europe 2007 Report’ pp. 20-21. 27 Swiss Institute of Comparative Law 2008, pp. 236-237. 7 Interview with P. Diallo, GD of UCPF, Paris 15 February 2008. 28 Swiss Institute of Comparative Law 2008, pp. 238-239. 8 ‘Study on the representativeness of the social partner organisations in 29 See also, SAOS. the professional football players sector’, Catholic University of Louven 30 Swiss Institute of Comparative Law 2008, p. 239. 2006, p. 81. 31 Directoire Générale des Collectivités locales ‘Les relations financières 9 Chaker, A-N., ’Good Governance in Sport, A European Survey’, Council of entre les collectivités territoriales et les clubs sportifs’, Guide de l´élu, Europe Publishing, 2004, pp. 56-60, p. 60. 2002, p.8. 10 32 Data taken from the website of the French Ministry of Youth and Sports, § L.132-2 of the French Sports Code (#ODEDU3PORT) and decree no. 2002- http://www.jeunesse-sports.gouv.fr/. 761 of 2 May 2002. 11 Chaker 2004, p. 60. 33 Gouguet, J.J. and Primault, D., ‘The French Exception’. Journal of Sports 12 Chaker 2004, p. 59. Economics, 2006, pp. 47-59, p. 7. 13 34 § L. 100-1 of the French Code of Sport (#ODEDU3PORT). Andreff, W., ‘French Football: A financial crisis rooted in weak governance’, 14 § L. 100-2 of the French Code of Sport (#ODEDU3PORT). Journal of Sport Economics 2007, pp. 652-661. 15 § L. 113-2 French Code of Sport (Code du Sport) and decree no. 2001-828 35 Andreff 2007, p. 659. of 4th September 2001 36 L´Equipe.com, 22 February 2008. 16 37 § L. 113-3 French Code of Sport (#ODEDU3PORT). Collin, I. ‘Senate Report nº336’,8 June 2004, pp.1-288. 17 Murat, B. and Martin, P., ’Rapport d’information n° 467 (2006-2007) fait 38 Andreff 2007, p. 658. au nom de la commission des affaires culturelles sur les associations de 39 Deloitte, Annual Review of Football Finance, May 2008, p. 13. supporters’, pp. 1-43. 40 Deloitte, Annual Review of Football Finance, May 2007, p. 11. 18 Lesay, J.D., ‘Faut-il avoir peur des sénateurs ?’ (Must we be afraid of 41 Deloitte 2008, p. 18; Forbes listed only one French club, Olympique senators), So foot, 4 October 2007. Lyonnaise, among the 20 richest clubs in Europe, ‘Soccer Team 19 For the analysis of ownership and governance structures of French Valuations’, Special Report, 30 April 2008, http://www.forbes.com/ football clubs and the most adequate legal structures for supporters’ lists/2008/34/biz_soccer08_Soccer-Team-Valuations_Rank.html. groups, we have made extensive use of the Swiss Institute of Comparative 42 Deloitte 2008, pp. 13 and 17. Law, ‘Comparative Study of the Legal Structures of Football Clubs and 43 Deloitte 2008, p. 14. Supporters’ Organisations in 45 Jurisdictions’, Volume I, 2008, pp. 1-367. 44 Grenoble, Lille, Lens, Lyon, Le Mans and Lalenciennes. 20 The local structures for sports companies and professional clubs are 45 Deloitte 2008, p. 15. established in the Code of Sport, 2004 §§ L. 122-1 to L. 122-11 Code of Sport. 46 Piot, A., ‘Competition between European football clubs’, www.oboulo. 21 Swiss Institute of Comparative Law, 2008, pp. 235-236. com, October 2007, p. 14. 22 Swiss Institute of Comparative Law, 2008, p. 238. 47 Interview with P. Mignon, sociologist of INSEP (French National Institute

%8%#54)6%35--!29 &RANCE

of Physical Education) and formerly responsible for supporters at the LFP, Matches (T-RV), Council of Europe, 31 January 2008, p. 38. Paris, 14 September 2008. 60 Wurbs and Schneider, T-RV 2008, p. 38. 48 Interview with P. Mignon. 61 Murat and Marin, 2007. 49 Mignon 2002. 62 Interviews with P. Diallo, General Secretary of Union de Clubs de Foot 50 Hourcade 2008. Professionel, and P. Mignon, sociologist specialised in supporters, Paris, 51 ‘France – a footballing culture?’, Journal of Football History, Issue 1 15 February 2008. December 2007. 63 Hourcade, N., ‘Supporterism, Ultras and the world of football’, EUROFAN 52 Constant, A., ‘Le football français est privé de vrais derbys’ (The Private Book, 2006, pp. 31-36. 64 Truth of French Football Derbys). ,E-ONDE. 25 February 2005. Hourcade 2006, p. 34. 53 ‘Les supporteurs au coeur du pouvoir de l´O. M.’ Le Monde, 16th March 65 Interview with Sam, leader of Magic Fans (Ultra group of Saint-Étienne), 2006, p.17. February 2008. 54 South Winners, Yankees, Commandos Ultras, Marseille Trop Puissant, 66 Swiss Institute of Comparative Law 2008, p. 240-241. Dodgers, Club Central des Supporters, Fanatics and Handi Fan Club. 67 Recommendations suggested by Nicolas Blanc, French Football 55 http://federation-des-associations-de-supporters-du-football-francais. Finance expert. fas-football.com/. 68 Murat and Martin, 2006-2007, p. 20. 56 Interview with L. Durand, FAS Development Officer, Paris, 16 February 2008. 69 The SOS Ligue 2 supporters´ movement rose as a consequence of the LFP 57 On 15th February 2008, the FFF hosted a meeting of supporters’ decision to broadcast matches on Friday and Monday. organisations from France (FAS) Spain (AFEPE) and Denmark, to design a 70 Murat, B. and Martin, P., ’Rapport d’information n° 467 (2006-2007) fait common strategy. au nom de la commission des affaires culturelles sur les associations de 58 Durand, L., ‘FAS Development Project’, October 2007, p. 5. supporters’, pp. 1-43. 59 71 Wurbs, D. and Schneider, T., ‘Handbook on developing and establishing Fan liaison officer (called &ANBEAUFTRAGTE in German), § 5 supporters’ charters in Europe’, European Convention on Spectator Lizensierungsordnung and § 30 SiRiLi. Violence and Misbehaviour at Sports Events and in particular at Football

References

Albert-Roulhac, C., ‘Raising the Bar’ Corporate Governance in Fresney, L. D., Atlas des Français, Grand angle sur un people Europe 2007’, Report Heidrick & Struggles International, Inc., singulier, Ed. Autrement 2002 p.2. 2007, pp. 20-21. ‘France a footballing culture?’, The Journal of Football History. Andreff, W., ‘French Football: A financial crisis rooted in weak Issue 1, December 2007. governance’, Journal of Sport Economics 2007, pp. 652-661. Gouguet and Primault, ‘The French Exception’ Journal of Sports Aulas, J. M., ‘Prospectus Olympique de Lyon’, !UTORITÀDES Economics. 2006; p. 7, pp. 47-59 -ARCHÀES&INANCIġRES, 2006. Hourcade, N., ‘Supporterism: Ultras and the World of Football’, Collin, I., ‘Senate Report nº336’, 8 June 2004, pp.1-288. EUROFAN Book, pp.31-36.

Chaker, A. N., ‘Good Governance in sport’. An European survey, ‘Les supporteurs au coeur du pouvoir de l´O. M.’ Le Monde, 16th p. 60. March 2006, p. 17. ,IGUEDE&OOTBALL0ROFESSIONNEL: report season 2006/ 2007. Charkham, P.,’ Keeping Good Company’, Oxford: Claredon Press, 1994, p. 125. Lesay, J. D., ‘Faut-il avoir peur des sénateurs?’ (Must we be afraid of the Senators?) 3OFOOT, 4 October 2007. Deloitte, Annual Review of Football Finance, May 2007. Murat, B. and Martin, P., ’Rapport d’information n° 467 (2006- European Commission, ‘Comparative Study of Corporate 2007) fait au nom de la commission des affaires culturelles sur les Governance Codes Relevant to the European Union and its associations de supporters’, pp. 1-43. member states’, )NTERNAL-ARKET$IRECTORATE'ENERAL, January 2002, p. 3. Swiss Institute of Comparative Law, ‘Comparative Study of the Legal Structures of Football Clubs and Supporters’ Organizations in 45 Constant, A., ‘,EFOOTBALLFRAN¾AISESTPRIVÀDEVRAISDERBYS’ Jurisdictions’, Lausanne, 14 March 2008, pp. 1-367, pp. 236-237. (The private truth of French footballs derbies). Le Monde. 27 February 2005. Piot, A., ‘Competition between European football clubs’, www. obulo.com, p. 14. Coordination Nationale des Ultras. Infos n°01 – August 2007 and Infos nº2 November 2007, Manifesto. Wallace, S.. ‘England still stumbling along behind Europe’s elite’, The Independent, 21 December 2007. Directoire Générale des Collectivités locales ‘Les relations financières entre les collectivités territoriales et les clubs sportifs’, Wurbs, D. and Schneider, T., ‘Handbook on developing Guide de l´élu, 2002, p.8. and establishing supporters’ charters in Europe’, %UROPEAN #ONVENTIONON3PECTATOR6IOLENCEAND-ISBEHAVIOURAT3PORTS Durand, L., ‘FAS Development project ‘ October 2007. %VENTSANDINPARTICULARAT&OOTBALL-ATCHES4 26 #OUNCILOF %UROPE, 31 January 2008. WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY

Summary 60

General Introduction to Economic, Political and Cultural Environment 61

1. Structure of German Football 62 1.1. German Football Association (DFB), German League Association (Ligaverband e.V.) 62 and German Football League (DFL) 1.2. Government 62

2. Structure of German Football Clubs – Ownership and Governance 63 2.1. Ownership Structures 63 2.1.1. Critique on the Legal Form of Members Associations 64 2.1.2. Ownership Regulation – 50+1 Rule 65 2.1.3. Critique of the 50+1 Rule 66 2.2. Governance Structures 66 2.2.1. Governance Regulation 66 2.2.2. Governance Structures for Non-listed Clubs 67 2.2.3. Supervisory Board 67 2.2.4. Management Board 67 2.2.5. Members’ Meeting 68 2.2.6. Implication for Management Behaviour 68 2.2.7. Supporters’ Influence 68 2.2.8. Community Involvement 69 2.3. Financial Regulation – Licensing System 69 2.4. Financial Performance 70 2.4.1. The Bundesliga 70 2.4.2. 3. Liga, Regionalliga and Oberliga (Third and Fourth Division (until 2007/08 Season)) 71

3. Fan Culture 71 3.1. Independent Supporters’ Clubs 71 3.2. Fanabteilungen (Fan Departments) 72 3.3. Ultra Groups 72 3.4. Fan Initiatives 72 3.5. Fan Liaison Officers 73 3.6. Fan Projects 73 3.7. National Fan Groups 74 3.7.1. BAFF 74 3.7.2. Unsere Kurve 74 3.7.3. ProFans 75 3.8. Dialogue with the Authorities 75 3.8.1. Formal and Informal Links to DFB and DFL 75 3.8.2. Fan Contact Officers at DFB and DFL 76

4. Suggestions 76 4.1. Adequate Legal Structures of Supporters Groups 76 4.2. Governance Guidelines via Statutes 77 4.3. Conversion and 50+1 = more democracy? Adequate Legal Structures of Football Clubs 77 4.4. National Supporters Groups 78 4.5. Football Authorities 79

%8%#54)6%35--!29 'ERMANY Summary

 Football in Germany is governed by the rooted in German society and are clubs varies from club to club. Members’ DFB (German Football Association), while considered socially valuable. However, associations do not automatically have governance and control of the Bundesliga the existence of members’ associations in a well-organised and actively involved and 2. Bundesliga are assigned to the professional football in Germany has been fan scene, and there is no charter in club Bundesliga. All 36 professional football criticised by some in German football, due statutes that helps members to increase, or clubs of the Bundesliga and 2. Bundesliga to the increasing economic and sporting at least define, their formal rights. are members of the Ligaverband e.V. importance of participation in international There are well-respected and (League Association). The League competitions. These critics believe that the organised fan groups on the national level, Association itself is an independent rule puts German clubs at a competitive like Unsere Kurve, BAFF and ProFans, all member of the DFB and as such is bound disadvantage by essentially making a of which support fan democracy. However, by the foundation statutes held between complete takeover of a club impossible. the national groups have not currently the sister organisations. At the end of Our research has shown that the 50+1 developed their agenda far enough to be of the 2007/08 season a new 3. Bundesliga rule and the structure of members’ much benefit to fan groups at the club level was formed and placed between the association do not necessarily facilitate the when it comes to questions of governance, 2. Bundesliga and the Regionalligen; it involvement of fans in running their clubs. which is therefore due to various reasons, is also governed by the DFB. From the However, it has also been shown that particularly the fact that everybody works 2008/09 season, 20 will teams start in the meaningful fan involvement within those on a voluntary basis and lacks time to be new league, increasing the ranks of fully ownership structures and regulations has further involved. This could be overcome professional clubs in Germany to 56. been achieved in several cases. Overall, by a Supporters Direct Europe advising Germany’s sports policy is defined by the ownership regulation guarantees the groups and provide adequate services. The the socio-political importance of sport opportunity for the members’ association groups could provide advice on ownership itself. Key points are the autonomy of sport, to influence the limited company through and governance issues in the future and, the subsidiarity of sports organisations and the 50% plus one vote stake in their club. a Supporters Direct Europe could help to the general cooperation between the state Currently, football clubs are still broaden their reaction. Indeed, we strongly and sport organisations. In principle, the dependent on their members. In the believe that cooperation between the two government follows a “non-interventionist event of the 50%+1 rule disappearing, the groups could be beneficial to organised sports legislation model”. members’ associations would most likely football fans (not only) in Germany, as a lose shares in their professional football Supporters Direct Europe would have the  The ownership and governance units without any compensation at all. experience to help move their respective environment in German football is quite However, any future fan involvement could agendas forward. Additionally, we believe different from the one in other countries, be achieved more readily in members’ that the experiences of Unsere Kurve, due to the 50+1 rule making it impossible associations than in companies, as the BAFF and ProFans, as well as those of for investors to take over football clubs. members practically own their clubs. some well organised supporters clubs, Until 1998, all 36 clubs in the Bundesliga Abandoning the members’ association could contribute to the establishment of and 2. Bundesliga were registered model runs a real risk of endangering the a Supporters Direct Europe. However, associations (known as EINGETRAGENER strong links between the clubs and their the requirement for a Supporters Direct 6EREIN (E6.) in German) called members’ communities, from which German football Europe to act other than in an advisory associations. Since 1998, professional draws much of its strength. capacity is questionable. All suggestions clubs have had the opportunity to move it would make will not fit all, but might be or incorporate their professional football  The actual influence of independent helpful for some. In any event, they would section into an external limited company supporters clubs’ &ANABTEILUNGEN (fan have to be tailored to the individual needs that is separate from the parent club. The departments), and Ultra groups in Germany, of each fan group. fundamental difference from the basic is dependent on various factors, the There are established communication regime governing other European limited most relevant ones being: the ownership channels in place between national companies is the strict rule on majority structures, governance structures, club fan groups and the football authorities shareholdings imposed by the DFB; the statutes and the fan culture at the respective and the DFB and the DFL have both co-existing members’ associations/parent clubs. The groups we have spoken to made appointed fan managers as contacts for clubs have to retain a majority shareholding it very clear that fan involvement in German fan related matters. Compared to the in the newly separated limited companies1, football has no single model, neither for fan other five countries covered in this study, which means 50% plus one vote have to groups, which are part of the clubs, or for Germany is far ahead when it comes to be held by the parent club (the parent club independent groups. Hence, the research fan involvement on the local and national being the members’ association). shows that the standards and levels of level. However, supporters still have Members’ associations are deeply fan involvement in the running of their issues and areas of concern.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY

General Introduction to Economic, Political and Cultural Environment Germany is home to about 82.5 million people spread across important to all of them and therefore covered by the Codex. 16 federal states. Germany is the largest economy in Europe, General principles of shareholder rights are established in the and the third largest in the world, when measured purely by its German Civil Code (BGB). With regards to the representation $2.63 trillion GDP in 2007. However, throughout the past few of the supervisory board, it has already been mentioned that years, Germans have become increasingly concerned about the big shareholders play an active role in the governance of the high level of unemployment, which was 3.7 million in June companies. Small shareholders, with less than 5% of shares, 2007, and a general economic downturn and following recession, and institutional shareholders, who are not affiliated with banks, even though the economy has recently shown signs of a slow generally do not play an important role on German supervisory recovery2. As a founding member of the EU, Germany is keen to boards, meaning they are not part of the coalition7. establish an European Constitution among all member states. With regards to shareholder rights and participation Germany can be described as a constitutional democracy. mentioned by the Codex, the supervisory board has no The German capital market has 1187 German companies formal right to give specific instructions to the management quoted on the Frankfurt Stock Exchange. Based on concentrated board, but the latter has to fully respond to questions raised share ownership, and rather low levels of takeover activity, by the supervisory board. Incomplete reports or answers Germany is considered an “insider or stakeholder-controlled could endanger the validity of the management board’s system”3, By contrast, the UK and US have larger equity markets, actions. Disclosure and transparency guidelines try to more dispersed ownership and more active markets in corporate ensure information flow between the management board and control. shareholders and stakeholders8. In terms of voting procedures, Germany has been characterised as traditionally valuing Germany complies fully with the one-share/one-vote principle. cooperation and consensus, which is underpinned by its system For general business transactions or board elections a of corporate governance. Companies are governed by a two-tier simple majority is sufficient, while a 75% majority is needed board structure, consisting of both a supervisory board and a for alterations of the articles of the association, reduction management board that are mutually independent of each other. and increase of capital or major structural and strategic The typical German supervisory board embodies three decisions. Even though the codes regulations and guidelines to four types of powerful and influential stakeholders: large are mostly regarded as beneficial for corporations and non- shareholders (mainly rich families, other companies, banks or listed companies, the Codex is flexible and non-binding. The insurance companies, who often account for 50% or more of the “comply-or-explain principle” only assures that companies company’s ownership), employee and/or union representatives, either follow the rules set by the Codex or disclose and explain and often former executives4. This “governing coalition” plays their non-compliance. Thus, the level of implementation of the an active role in the governance of most German corporations, Codex varies from company to company9. through appointing, dismissing and determining the remuneration There are three different legal forms of the limited company: of senior managers, ensuring legal compliance, monitoring the GmbH (private limited liability company), the AG (public annual accounts and generally monitoring the long-term strategy limited company, which are often, but not always, listed on the of the company. Essentially, the supervisory board monitors the stock exchange), and KG (aA) (limited partnership with one performance of the company on behalf of its stakeholders. general partner that is liable without limitation; often a GmbH The management board is the second tier of the governance acts as general partner and the company has to be named GmbH structure and is accountable to the supervisory board. It is & Co. KG)10. There are currently almost one million GmbH’s, the comprised of the company’s most senior executives and most common legal entity, in Germany, followed by about 20,300 basically handles the day-to-day business of the company. In AGs and around 330 KGaAs11. the context of European integration and the progressive process The most commonly used legal structure for volunteer- of globalization, it has been argued that the general structure of based bodies is the EINGETRAGENER 6EREIN (E6), or registered German corporate governance is shifting towards the Anglo- association, which is based on broader community and social Saxon model. This has occurred through the role of supervisory values. The number of almost 550,000 Vereine at the end of boards being restricted to that of monitoring, while the 2005 shows the tradition of self-organisation within German civil management board continually increases in power, even when society. According to Artikel 9 Abs 1 GG (Basic Law, the German compared to Anglo-Saxon boards of directors5. However, the equivalent to a Constitution), all Germans have the basic civil German Code of Corporate Governance (Codex) was introduced right to form a Verein or Gesellschaft (company). in 2002 with the main aim of improving the objectives and role of It is not our intention to go into detail regarding the assessment supervisory boards, and to increase the degree of transparency and the evaluation of German corporate governance and its recent in particular6. For the first time the Codex focussed not only on development. Concrete assessments will be made concerning listed companies, but also noted that its principles could be of the governance structures of football clubs and the implication for value for non-listed corporations. management behaviour therein, including the level of supporter Different matters are important to different investors and influence. Such a focussed assessment is necessary to avoid other stakeholders, and so we can only mention a few that are becoming lost in the wider perspective.

%8%#54)6%35--!29 'ERMANY 1. Structure of German Football Regionalliga. He confessed having members’ association18. The League cooperated with an organised crime group, Association itself is an independent Football is the most popular sport in and several players, coaches and officials member of the DFB and as such is bound Germany. The German football association, have also been accused of involvement in to the foundation statutes held between Deutscher Fußball-Bund (DFB), represents the scandal. Although no 1st Bundesliga the sister organisations. At the end of an estimated 26,000 football clubs, which games appeared to be influenced, the the 2007/08 season a new 3. Liga will have roughly 6.5 million members amongst affected matches did include an DFB Cup be formed and placed between the 2. them. Overall, a total of 1,175,926 teams first-round contest between the regional Bundesliga and the Regionalliga19. From compete in an official league on a weekly side Paderborn and the Bundesliga club the 2008/09 season, 20 teams will start basis12. The 36 professional football clubs Hamburg, which was held in August 2004. in the new league, increasing the ranks of the Bundesliga and 2. Bunddesliga In this game Hamburg lost 2:4, as two highly of fully professional clubs in Germany have a combined membership of almost questionable penalties were awarded to to 56. Both Bundesligen, the 3. Liga and 600,00013, and this number continues to Paderborn and, as a result, a Hamburg the Regionalliga will be governed (and increase. player was sent off for protesting as the licensed) by the DFB20. All German football clubs were club was eliminated from the lucrative The operative business side of the structured as registered members’ competition. The DFB-Kontrollausschuss League Association is run by the DFL, associations (EINGETRAGENER 6EREIN (e.V.)) (DFB Committee of Control) reacted to the whose regulatory and marketing role is well prior to 1998. Members’ associations are scandal with a number of measures that defined in the league statutes previously non-profit organisations with no operative intended to prevent any similar incidents mentioned21. The DFB was the exclusive side; they are owned by the members and occurring in the future. authority of German football for over 100 they are managed by representatives who Germany hosted the World Cup in years, but the DFL, founded in 2001, has are elected by those members. Any revenue 2006. The required stadiums were built, or now taken over. The DFL provides various generated by a members’ association has expanded, at a cost of around €1.9 billion services and also issues each club’s to, by law, be reinvested back into the club. with the clubs contributing 7% of this sum, license upon fulfilment of established However, since 1998 many professional stadium operators 44%, and third parties sporting, governance, economic and football clubs have incorporated their 49%16. Hence, the standard of German administrational requirements. The DFL professional football sections into external football stadiums is now comparatively is based on a democratic structure, with limited companies, which are separate high and many clubs are benefiting from every member having one voice/one vote from their parent clubs. This strategy the improved facilities, which particularly and decisions being based on majority has aimed to help provide them with new include enhanced corporate areas, votes22. Each league has seats on the opportunities for coping with the economic and the development has thus been board of the League Association and so it challenges in professional football, and driving increases in revenue. It is worth can be argued that the clubs manage the the increased competitiveness seen in the mentioning here that, despite the opening leagues themselves. Nevertheless, their European market. However, one obligation of redeveloped stadia, German stadia still freedom is restricted by the DFB statutes a club must fulfil prior to this structural have standing terraces, although their which are binding on the DFL. change is that the members’ association capacity in the bigger stadiums has been The DFL is a relatively young must hold the majority of the corporation’s decreasing in the last few years. organisation and is still in the process votes (50% plus one vote). This obligation of defining itself. The hand-over phase is believed to protect the interests of the 1.1. German Football Association (DFB), between the DFB and the DFL is still not club members, as it avoids any external League Association (Ligaverband e.V.) complete and due to this the two parties control being held over professional and German Football League (DFL) are struggling to define their respective football, thereby preserving its integrity. The German Football Association (DFB) areas of responsibility. Consequently, In 2006/07, the German Bundesliga was founded in 1900 as a registered these conditions are having a negative recorded an increase in operating profits members’ association. A “new” DFB, impact on their relationship with fan groups of €168m (206%) to €250m, €109m more comprising the FAs that were previously and the work of the AG Fandialog, a regular that the English Premier League (€141m)14 present in the former West and East meeting between representatives of and became the most profitable league Germany, was formed after reunification in supporters groups, DFB and DFL. The fan in Europe, while average ticket prices are 1990. According to the DFB’s statutes its groups do not know whom to address and among the lowest of the ‘big five European’ main duties are running the Regionalligen, the situation creates a vacuum in which the leagues. The key to the Bundesliga’s the highest amateur league, the National DFB and DFL can shift responsibility from growth in operating profits was in limiting Team, the DFB Pokal (the German FA one to the other. wage cost growth to only €12m (2%) Cup), refereeing and the promotion of § 11 Abs. 1 of the foundation agreement in 2006/07, despite the €184m (15%) talent and international competitions. between DFB and DFL refers to football’s increase in revenue. Most impressively, all In 2001, the governance and control of special nature and its importance for 18 Bundesliga clubs reported operating the Bundesliga and 2. Bundesliga (the society. The League Association has to profits in 2006/07 (up from 12 clubs in Germany’s only two professional football promote its own social initiatives and 2005/06)15. leagues) was assigned to the Bundesliga17. support those of the DFB, which it does In early 2005, German football was Since then the DFB has been the umbrella by indirectly funding grass roots football overshadowed by a match-fixing scandal, association, representing its estimated 6.5 and supporting regional associations the so-called Hoyzer scandal. The second million members. and voluntary services in members’ division referee Robert Hoyzer confessed All 36 professional football clubs in associations. to fixing and betting on matches in both the Bundesliga and 2. Bundesliga are the 2nd Bundesliga, the DFB-Pokal members of the Ligaverband e.V. (League 1.2. Government (German Cup), and the the third division Association), which is a registered Currently the German constitution

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY (Grundgesetz (GG)) does not contain a tax, and donations to sports clubs are mentioned as a valuable vehicle to improve specific reference to sport and there is no also tax deductible. The National Institute European cooperation on macro- and specific law on sport at the federal level, for Sports Science, a consultant to the micro-political levels. Furthermore, the meaning that under constitutional law Ministry of Interior on sport-related issues, Sports Ministers supported the definition there is no clear federal allocation of rights is also on the government’s payroll and of sport in the Nice Declaration31 and and duties in sport. According to Art. 30 issues publications on political, economic, mentioned the importance of balancing the of the GG, the exercise and compliance legal and cultural matters of football28. autonomy in sport with legal certainty32. of national authority is a matter of the 16 Based on the “non-interventionist sports- Laender if the GG does not say anything to legislation model”, state subsidies to the contrary. On a state level, the allocation sports organisations follow the general 2. Structure of German Football of jurisdiction could be based on existing financial rules applied to grants of treasury Clubs – Ownership and law, the nature of the matter or on the funds29. The government negotiates the Governance33 fair settlement of claims regarding the general terms and conditions of such respective subject matter. In other words, funding directly with the representatives of 2.1. Ownership Structures legislative competence lies within the the national sports movement. Until 1998, all 36 clubs in the Bundesliga federal states if the federal government The flexibility of the non-interventionist and 2. Bundesliga were registered itself is not exclusively competent. This model has been underlined by recent associations (known as EINGETRAGENER “non-interventionist sports legislation practice. Attention is currently focused on 6EREIN E6 in German) called members’ model” is pursued at the Laender level to the fight against doping, with the Sports associations. Members’ associations support the initiatives of the local sports Commission leading the work on the draft are not-for-profit organisations with no movement. bill. Another issue of concern is violence in operative side, are owned by the members, Germany’s sports policy is defined by football stadiums and stadium bans. These and are managed by representatives the socio-political importance of sport topics have been discussed by the relevant elected by those members. By law, any itself. Key points are the autonomy of sport, representatives and are being moved revenue a members’ association generates the subsidiarity of sports organisations forward by the DFB and DFL30. This scope has to be reinvested into the club, and as a and the general cooperation between the in decision making allows the respective result the realisation of profit was formally state and those organizations. The Ministry organisations to react quickly to emerging alien to the Bundesliga. of the Interior governs sport to a certain sports-related issues and change their Since 1998, professional clubs extent but only acts in specific areas, such policies accordingly. An evaluation of the have had the opportunity to move or as international representation, funding of effectiveness and execution of specific incorporate their professional football sport initiatives through the Laender and, decisions will be subject to this analysis at section into an external limited company currently, anti-doping legislation23. The a later stage. that is separate from the parent club. The Commission of Sport, sport’s parliamentary Principles of (corporate) governance League Association decided that such a platform, is currently considering whether also apply to the non-interventionist structural change was inevitable due to the sport should be explicitly addressed in the government model and the autonomy of increasing commercialisation of football in German constitution in recognition of its sports organisations, with all organisations Europe. Indeed, they actually help clubs increased social and cultural significance. legally bound by the German Civil Code to incorporate their professional football Also on their agenda is a reform of the legal (Bürgerliches Gesetzbuch (BGB)). In unit into an external limited company to implementation of members’ associations regards to governance, companies should help provide opportunities to cope with regarding the discharge of voluntary comply with the German Code of Corporate the economic challenges in professional activities, questions about liability and Governance (Codex). Additionally, the DFL football and increased competitiveness in the general reduction of bureaucracy24. licensing system advocates a compulsory the European market. Essentially, the government and its sports framework for the governance structure In the 2006/07 season, six clubs within commission have quasi-legislative power, of professional football clubs, which the Bundesliga remained members’ which they are trying to increase despite should be implemented into the clubs’ associations (Figure 1)34. The other twelve the opposition of the Laender. statutes. According to Chaker, the German clubs changed their legal structure by Currently there are about 90,000 sports Government itself “observes most of the moving their football license department organisations registered in Germany, basic good governance in sport principles. into a limited company, of which BVB of which 25,869 are football clubs. The (…) The only principle that the German Dortmund GmbH & Co. KGaA is the only one funding of those organisations varies Government may not consistently apply is listed on the stock market. At the same time, from state to state, but is generally based the consultation of the sports movement in there were only six limited companies and on the principle of helping others to help the preparation of sports related legislation.” twelve members associations in the second themselves25. Essentially, state funds will However, there is a conflict of interests if the division (Figure 2). FC Bayern München AG only be granted up to the point that allows president of the Sports Commission is also and Borussia Dortmund GmbH & Co. KGaA the organised sport to enable its own the president of the federal governing body are the only companies in the Bundesliga means, thus the receiving party must be of equestrian sports. with external investors. All the other clubs trustworthy and able to partly self-fund As president of the European Council have no additional shareholders and are its activities26. The funding comes either from 1 January – 1 July 2007, Germany fully owned by the members associations. directly from the Land or is distributed hosted an informal meeting for EU Sports All football clubs in the 3rd League and by the federal sports organisations27. To Ministers in March 2007. One of the Regionalliga (fourth division) also have the further encourage self-sufficiency, not- key topics was sport and its economic choice between the structure of members for-profit members’ associations benefit effects, while others dealt with violence, associations and limited companies (from from certain exemptions, such as that integration, and the fight against doping. season 2008/09 on)35. from corporation tax and trade and sales The White Paper on Sport was positively

%8%#54)6%35--!29 'ERMANY Figure 1 internal structure of the company follows listed on the stock exchange is the Borussia Ownership and governance structure of in principle the rules of the AktG. However, Dortmund GmbH & Co KG aA. A race to the the Bundesliga clubs (2006/07 season) the club did not decide to float its shares on stock market among bigger clubs has not the market as the club’s financial situation yet taken place. In the case of Borussia, the 1 Listed Limited Companies was considered to be positive under the GmbH is completely owned by the nonprofit current situation’37. registered association Borussia Dortmund e.V., which manages and controls the whole Gesellschaft mit beschraenkter haftung business. Shareholders are not permitted (GmbH) – Private Limited Liability to intervene in substantive management Company38: ‘The Private Limited Company decisions or personnel decisions.888 is liable within the limits of the company’s However, this structure is considered to assets, but not the assets of its operator. be a governance vacuum which seems to Its structure allows corporate governance be confirmed by continuously falling share and a limitation of the club’s liability. One prices. Another example: The General example of a football club structured as Assembly of the SV Werder Bremen 6 Members a private limited company is the decided on 7th of May 2003 the foundation Association "AYER ,EVERKUSEN&U¶BALL'MB( and its several of the ‘Werder Bremen GmbH & Co. KG affiliated limited companies’39. aA’ to spin off the economically relevant 11 Limited Company business transactions from the sports GmbH &Co KG aA & GmbH & Co KG association ‘Werder’ 1899 e. V. itself. Two – combination of a limited company with structures thus coexist: the association, Figure 2 a Kommanditgesellschaft (KG) (limited with its inherent administrative structure, Ownership and governance structure of partnership) or a Kommanditgesellschaft and a partnership limited by shares where the 2. Bundesliga clubs (2006/07 season) auf Aktien (aA) (stock company)40: ‘The the general partner with unlimited liability most common legal form of football clubs is a limited liability company, owned by

6 Limited is the relatively new legal form of a private the association. Other clubs adopted the Company partnership limited by shares with a limited simple GmbH & Co KG without any element liability company as general partner of a stock corporation.’42 ('MB(  #O +') most often combined with elements of a joint stock companies 2.1.1. Critique of the Legal Form of ('MB(#O+'A! ). The structure of this Members’ Associations hybrid company form contains elements The ownership structure and the related of a limited partnership and of a stock governance style imposed by the German corporation. The KG structure implies reliance on members’ associations has been unlimited liability of at least one of the criticized in the past. The critical voices have associates; however it is permitted that recently gained more support from within the this general partner is a limited liability professional game and even from the Tax company ('MB(). The KG aA differs Ministry due to the increased importance of 12 Members from the AG regarding the quality of participation in international competitions Association its associates: The general partner (especially the Champions League) and the (generally one) is subject to unlimited poor financial performance of professional liability while there are partners liable up football clubs in the former East Germany There are different structures of limited to a fixed amount (generally several). The and the lower leagues in general43. The companies football clubs have adopted, latter invest a certain amount and seeks main argument is that even though clubs are which the Swiss Institute of comparative profits, but is neither liable beyond the organised as sporting clubs they are de facto Law has outlined in detail: capital stock he provided nor authorised fully functioning companies, even if they do to take any company decisions. The by- not have the structure of such companies. Aktiengesellschaft (AG) – Joint Stock laws must provide for details regarding According to § 21 of the BGB, members’ Companies or Companies limited by who might be shareholder. Until 1997, the associations have to be dedicated to shares36: ‘[Some] clubs keep the structure unlimited liability of the general partner sporting issues without being profit of an association, but “combine” it with made this legal form unpopular. Since orientated. Where football is concerned, the legal form of a company by shares, the German Supreme court allowed the members’ associations must have a as the example of the FC Bayern Munich general partner to be a Private Limited common purpose, which translates to shows. The club FC Bayern Muenchen Company, important changes occurred in members having no imposed responsibilities e.V. remains an association (EINGETRAGENER practice.’41 and simultaneously no rights concerning 6EREIN E6.) and keeps this structure, ‘The GmbH & Co KG aA proves to be one the financial resources generated by the headed by a president, two vice presidents of the most popular corporate structures club; Capital has to be reinvested in order to and an advisory board. However, the for professional football. Shareholders are maximize sporting success44. Based on this association has been implanted into the usually the club (the association) and its main definition it has been argued that members’ legal structure of a joint stock company sponsor. However, the shares of most of associations could even lose their legal as its principal stockholder (90%). The these clubs are not traded on the market as status were they became too commercial, Adidas AG holds the remaining 10% of the the commercial conditions of the clubs are as the restrictive not-for-profit condition shares in conformity with the 50%+1 rule rather unfavourable to that option. To date, could be violated by an increased focus on of the DFB and ,IGAVERBAND 3TATUTES. The the only example of such company form the clubs’ operational side45.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY In November 2007, the Tax Ministry members’ associations in the 21st century49. international competitions52. The German went even further by suggesting to The absence of budget restrictions, for licensing system goes much further than the Treasury that tax benefits held example, can lead to the acceptance of UEFA actually requests, and we will only by members’ associations should be financial losses, for which the executives and give a brief overview of the impact that reduced, as the original idealistic aspect the members of the clubs are not liable. It is certain licensing regulations have on of members’ associations has ceased to questionable whether, as they are voluntary, ownership rules, governance structures and exist46. According to the Treasury, football the chairmen and board of directors of the financial regulations in this report. clubs could potentially lose their non-profit clubs have the adequate tools for facing the § 4 LO states that one requirement status of members’ associations. However, increasing challenges of commercialism and a club must fulfil to be granted the DFL the Bundesliga, like the other big four growing professionalism, not to mention the license is that the club ownership structure professional football leagues in Europe, is challenges of running what are essentially must be in accordance with the DFB a powerful institution and it remains to be middle-sized companies50. Furthermore, the statutes. The fundamental difference seen if the authorities are ready for such a level of protection that is available to creditors from the basic regime governing other confrontational approach. So far there are and members against capital losses and the European stock companies is the strict no concrete changes to the legal form of transparency regarding information rights is rule on majority shareholdings imposed football clubs on the cards. also questionable. For these reasons, and by the DFB; the co-existing members’ However, the implementation of the others that are not discussed in this section, associations/parent clubs have to retain licensing system shows that sporting the governance structure of members’ the majority shareholding of the newly issues cannot be considered outside of a associations has been described as separated limited companies53, which financial context. While many fan groups dysfunctional and ineffective51. means the majority of votes (50% plus one oppose the structural change of converting An often-described correlation vote) have to be held by the parent company members’ associations into limited between members’ associations and poor (members’ association). Usually the limited companies, other fan groups support it. financial performance is one argument companies are the licensees of the DFB54. Additionally, as recommended by the DFL, commonly used against the structure of This regulation reflects two objectives: 1) the majority of literature also supports such members’ associations in contemporary it is intended to safeguard the influence of a structural change. professional football. This assumption the parent club on the affiliated company It has been argued that the ownership has been questioned, and some evidence in order to avoid additional influences from structure of members’ associations is exists to show that ownership structure creditors, lenders (mostly banks), minority partly responsible for the poor financial does not necessarily influence financial shareholders or a takeover55, 2) the 50+1 situation of professional football performance. Some members’ associations regulation intends to prevent a distortion of clubs and/or their lack of international are financially healthy and competitive, sporting competition. The two exceptions competitiveness47. The main argument whilst some clubs with a different ownership to this regulation involve enterprises rests on the changing reality of professional structure have accumulated huge losses that have sponsored a football club for football; where sporting success was once and do not compete well. The quality of more than twenty years prior to the 1st the main driver of all the internal activity in the board members and other governance January 1999, and who only own shares clubs, the focus has since shifted towards issues seem to be more important when it of the subsidiary company either directly economic/financial success, which has led comes to the assessment of performance or together with the parent company56; to the popular comparison with medium- and competitiveness. However, even Bayer 04 Leverkusen GmbH is therefore a sized companies. Hence, the criticism of if we would agree on a non-correlative 100% subsidiary of the Bayer groupe, as the classical members’ association model relationship between financial performance is VFL Wolfsburg GmbH of Volkswagen. It is unsurprising, as even though economic/ and ownership structure, while continuing should be mentioned here that there were financial aims vary from club to club it to promote the company structure as the cases where the clubs were against the is often the financial aims that dominate more competitive model, we still have to implementation a change in corporate form over sporting objectives. In other words examine the impact such a change would and in the case of Hamburg, the members’ the financial/economic aims are at least a have on supporters and their involvement in meeting successfully prevented the club strict additional element, or may even be the running of their club. from a structural change. absolutely necessary, to sporting success. The DFL’s support for transferring the The philosophy still is that clubs and the Another problem might be the level professional football department of football league can safeguard themselves only by of incentives available to executives and clubs into limited companies has weakened shifting individual rights from the clubs to the chairmen, as they have no individual rights the status of pure members’ associations. league. In Germany professional football is of asset acquisition. Dietl and Franck even However, the DFL is still standing behind the still characterized as a circle of competition speak of “dysfunctional incentives”, where clubs that remain members’ associations and cooperation, which needs to be elected representatives derive personal and it is highly unlikely this will change preserved. However, it is arguable whether gain from the fame and publicity associated within the next few years. the 50+1 regulation of shares leaves clubs with sporting success48, rather than from with the protection intended by the DFB, and operating in a financially responsible 2.1.2. Ownership Regulation – 50+1 Rule if the price they pay might be too high. manner. Similarly, there are no negative The main regulatory force in the Bundesligen The 50+1 rule has always been consequences for erroneous business and Regionalligen is the licensing system, questioned57, but extra pressure has decisions made by the management which has been developing since the recently been added after a minority of board, which often consists of voluntary 2000/01 season. The complex web of terms club officials, backed by potential outside members. Members’ associations do not and conditions are designed to safeguard investors, started pressing for an easing have to publish their annual accounting the operations of all league members of the system in favour of a more attractive data and this lack of transparency provides during the season and to ensure stability, and competitive marketplace for potential another reason to question the structure of integrity and continuity of the national and outside investors58.

%8%#54)6%35--!29 'ERMANY Figure 3 investor’s respectability/reliability. However, Simplified Diagram of the 50+1 Rule the DFL has admitted that an increasing number of investors have the potential Members Association to critically test the DFL statutes. When Christian Mueller, CEO of the DFL, was 'ENERAL-EETING questioned regarding these developments he expressed his understanding that there is electing a need to provide for foreign investments in appointing order to improve the financial and sporting 3UPERVISORY"OARD -ANAGEMENT"OARD success of the clubs, but he underlined the importance of the 50+1 rule258. Nevertheless, he suggested that “some liberalizing modifications to the DFL statutes 50+1 vote will be discussed with the protagonists to help resolve their reservations” and help decrease the pressure on the clubs. appointing 3UPERVISORY"OARD -ANAGEMENT"OARD However, in October 2008, shortly before this report was finalised, the DFL Limited Company board voted to retain the 50+1 rule, thus maintaining the member-owned principle and the bar on foreign ownership of clubs. DFL president Reinhard Rauball saying: The proposers of this view suggest that The majority of the 36 professional clubs ‘The Bundesliga lives from its stability and the 50+1 rule is the reason why external are in favour of the 50+1 rule and any future balance. Protecting the competition has to investors are simply not interested in the changes will have to be supported by a be the guiding principle.’65 Bundesliga, as they would not have much two-thirds majority. influence in the decision making process There is additional pressure on 2.2.Governance Structures of the club. The anti 50+1 argument also the ownership structure of members’ Different systems of governance exist suggests that the rule puts German clubs associations and the 50+1 rule arising from in Germany according to the different at a competitive disadvantage in the Russian investors, who have expressed ownership structures of professional European marketplace in both financial interest in football clubs in the former East football clubs (previously shown in Figures and sporting terms. However, Dietl and Germany owing to their poor financial and 1 and 2). For listed companies the system of Franck have pointed out that clubs who sporting situation. There are currently no corporate governance is designed to protect have incorporated their professional former East German clubs in the Bundesliga shareholder and stakeholder interests by football department are still not required and the clubs present in the 2 Bundesliga ensuring adequate levels of transparency, to follow governance regulations of typical are in relegation places, while those in accountability, competence and corporate corporations, which leads to a ‘governance the Regionalliga are struggling to gain responsibility66. More precisely, corporate vacuum’59. promotion. A Russian group is reportedly governance principles include, INTER keen to invest €20-25 million in FC Carl ALIA, legal regulations and arrangements 2.1.3. Critique of 50+1 Rule Zeiss Jena63, whose current budget is less regarding the distribution of high-level The current debate about the 50+1 rule is than €9 million. Hence, the club would decision-making rights in a company67. an obviously delicate issue for the German have to outsource its professional football Corporate governance is fundamentally football authorities. But the newly elected department into a GmbH in order to sell about the distribution of decision and League President, Reinhard Rauball, is the requested 49% to the investor. The sale control rights, governing and monitoring sceptical about change and points out of the 49% stake to outside investors in a management, influencing business policy, that any repeal of the rule would be final, professional football club would be a first and the formal organizational structure68. leaving the Bundesliga open to risks like in the German Bundesliga. The structural The main elements of the governance shareholders losing their interest and change was approved by 91% of the fans structure of German football clubs are the transferring their shares to third parties of the club, yet the contract between members’ meeting, the electoral committee, without anybody knowing60. He is also FC Carl Zeiss Jena and the investor was and the supervisory and management concerned about the effect this would declared contrary to DFL statutes and boards, each of which will be outlined below. have on the League as a whole as well as the structural change was denied. The criticising the English system, and has governance structure of the club was a 2.2.1. Governance Regulation suggested that these issues would have major concern in the run-up to the decision, The licence requirements for clubs to be discussed carefully with consultants as the contract stated that two executives include several governance criteria and the parties pushing for change61. would run the club: one from the club and that applicants have to meet69. These Hence, in March 2008 a meeting where one representing the investors. The league include the requirement that limited the 50+1 rule was critically discussed took statutes state that no minority shareholder companies have to be majority controlled place between representatives from all is allowed to determine the policies or, most by the parent club (members’ association). the 36 professional football clubs and the especially, the human resources of a club There are also specific criteria that DFL. The League President announced in any given way. Another concern was address the competence of the business that a solution will be reached by the end the lack of transparency of the off-shore management team, ranging from financial of 200862, calling for a major consulting investor and too many questions remained education to experience in accounting and process in order to avoid rushed decisions. unanswered, especially regarding the media matters. Additionally, members’

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY associations must ensure in their statutes the clubs with an e.V. structure, and all The supervisory boards are partly that it is the members who elect the chief joint-stock companies in the Bundesliga, elected by members of the club at the executive of the management board, or have implemented a supervisory board general meeting most particularly and also all of the management board’s members. to oversee the management board. partly by other sports divisions within the Appendix III of the licensing regulations Furthermore, an argument has been club. The biggest supervisory board in the outlines guidelines regarding the presented to suggest all non-listed two- Bundesliga has 12 members, which is about responsibilities, voting rights and general tier companies (like football clubs that are to be reduced to nine. Often the candidates management of the different elements of members’ associations but have a two tier have been officially suggested by the the club’s governance structure, e.g. for the structure) should follow the obligations of electoral committee, which is also selected member’s meeting and the management the Codex in order to improve corporate at the general meeting. Ideally, the members and supervisory board. In this context, the governance practices71. However, the DFL of the supervisory board should cover a members’ meeting is defined as the highest licensing system has only recommended range of skills, such as financial auditing, institution of the clubs. a compulsory framework for governance accountancy, sponsorship, marketing and Most clubs have a supervisory board structures within professional football in sporting experience. However, evidence overseeing the management board as Appendix III of the LO, which in turn should shows that often supervisory boards recommended in appendix III of the be implemented into the clubs’ statutes. are a reservoir of ex-presidents and big licensing regulations. The DFL has Furthermore, the DFL suggests that all names from the area. The quality of the reported a growing level of professionalism professional football clubs should have board seems to be an important issue, within the clubs, as experience in business four executive bodies: the general meeting, as members do not often seem to vote administration and amounts spent on the electoral committee, the supervisory for accountants or financial/economic personnel are increasing. Even though board and the management board. The specialists. This tendency suggests that compliance with the Codex would be scope of duties for the management and popular speeches could possibly attract a step forward for professional football supervisory board recommended in the more votes than candidate competency. clubs, there is a lot of space for individual LO is similar to the recommendations of Another problem occurs if the interpretation in terms of information flow the German Codex. supervisory board is simply a rubber and control. Hence, the actual level of The following section outlines briefly how stamp for the management board instead co-operation between members and the the management and supervisory boards of overseeing and controlling it. It then management board differs among clubs. of different clubs actually co-operate with loses its identity as an effective and The examples given here show that by each other. Even though recommended democratically legitimate instrument itself the implementation of a particular standards exist on how management and responsible for securing the interests of the governance system cannot bring positive supervisory boards should work together, members of the club. Hence, the election effects unless the controlling body also this actual relationship in practice can be of responsible and trustworthy people to takes action. Co-operation between the quite diverse. First, we will give an overview the supervisory board at the members’ supervisory and management boards, and of the management and supervisory boards meeting seems to be crucial for securing the need for them to consist of qualified in both members’ associations and limited democratic structures within the clubs. members, is fundamental to the club’s companies. The outline will be based on sporting and financial success. Hence, the an analysis of the influence held by the 2.2.4. Management Board framework set by the DFL and the German boards and shareholders, as affected by the The management board is the decision- Codex has been useful in improving decision making process and control system. making body. This board has the obligation the governance of football clubs. As This also raises several questions: How can to report to the supervisory board and recommended in the OECD Principles of fan groups influence the board’s decision- should consist of three to five full time and Corporate Governance70, stakeholders, making processes? What instruments do voluntary members. The decision-making like sponsors, creditors and supporters, they have at their disposal? How do they use structure of members’ associations is very should also have the opportunity to these instruments, and are they effective? similar to that of an AG (limited company), influence governance and performance Overall, what are the mechanisms through through the implementation of economic actively through the supervisory board. which organised fan groups can and do decision-making processes into the Overall, the DFB and DFL are now participate in corporate governance?72 existing club structure. However, despite following a more active approach regarding the governance recommendation by the the governance of football clubs. 2.2.3. Supervisory Board DFL73, the actual design of these structures The supervisory board oversees and varies from club to club. The management 2.1.2. Governance Structures for Non- controls the management board. It assigns board’s influence in the running of the listed Clubs the management board responsibility club is highly dependent on its quality and There are two types of ownership for the day to day operation of the club, competency in relevant legal, economic structures within German football that do appoints an independent auditor and and sporting matters. Overall, a strong not have to follow the ‘Comply or Explain’ authorises the financial plan produced rapport between the supervisory board principle of the German Codex, because by the management board. Generally and the management board has been the clubs are simply not listed: These the management board has to report to demonstrated to be beneficial for the ownership structures are the e.V., with and the supervisory board once every three effective running of the club. without supervisory boards, and the limited months. Further guidelines regarding the company. Hence, 17 out of 36 professional relationship of the boards are outlined in 2.2.5. Members’ Meeting football clubs in the Bundesliga (first the individual club statutes, e.g., additional Most club statutes, including those and second division) do not have to expenditure and amortisation of grounds suggested by the DFL guidelines, consider follow the Codex, with only Borussia may need to be authorised as well. the members’ meeting as the supreme Dortmund being listed. The majority of institution of football clubs. The members’

%8%#54)6%35--!29 'ERMANY meeting is the main decision-making the communication between them Generally, votes from three-quarters body, although fans argue that this fact is and the quality of their members. The and sometimes two-thirds of a clubs’ not widely known among members. The recommended standards do provide a members are required to pass a structural general responsibilities of the members’ supportive environment for good co- change from a members’ association to meeting are outlined in the statutes of operation. However, the actual structural a limited company, in other cases it is the the clubs and cover four main areas: the design of the relationship between the assembly of delegates, and in another the election of the supervisory board, the boards varies between clubs and may not executive committee. There is also one ability to dismiss the supervisory and always deliver. case where the decision would need to be management board, approving changes backed by the club’s fan division as well. of the statutes, and the closure of the club 2.2.7. Supporters’ Influence Most statutes of members associations itself. Its actual influence on decision- The theoretical overall controlling name the members’ meeting as the making processes within the club varies as position of the supervisory board gives supreme organ of the club. However, the exact responsibilities of the members’ members less influence on personnel the regulations of several statutes are meeting differ from club to club and are decisions when compared to the old vague regarding converting parts of often not clearly defined in the statutes. members’ association structure. In the members’ association into a limited order to overcome the dilemma between company; many clubs do not explicitly 2.2.6. Implication for Management representing the interests of the members outline any regulations and define clearly Behaviour and those of the club in professional that in most cases its members would Members could directly influence football the decision-making bodies are decide about a structural change76. As management boards in the old members’ built partly bottom-up, which justifies why mentioned before, another problem is that associations, but this has changed decisions are actually made top-down. many statutes are not easily accessible since the installation of supervisory The election of a member critical to the to (potential) members, but how is one to boards between those members and current administration might be difficult exercise rights if they are not necessarily management boards. The management in cases where the electoral board known by all members? The influence board is no longer directly overseen by exclusively nominates the candidates for of fans is defined in particular by club the general meeting, but rather by the the supervisory board. Additionally, the statutes, but there is currently no general members of the supervisory board who degree of active participation of members definition or charter of club statutes. This are elected at the general meeting. The varies from club to club. is despite general recommendations the fundamental difference to the pure 6EREIN Fan groups can be involved in their DFL has made regarding the areas club structure is that the management board is clubs in various ways and to different statutes should cover. Special measures not appointed through great speeches and degrees. Their degree of influence that could be followed in the event of populist activism at the general meetings (besides informal involvement) is defined misguided developments in the decision- anymore, but rather in recognition of the in the statutes of the clubs, which are often making processes at the club are often successful candidate having the requisite written in co-operation with them. Fan not outlined in the statutes, which skills to run a professional football club. groups can either be independent of the increases the pressure on the members of The DFL supports clubs who want clubs or integrated in the clubs’ structures, the boards of the club. to change their ownership structure with the latter known as &ANABTEILUNGEN A guide for club statutes could help into that of a limited company, and they (fan departments). Several fan groups also to raise standards and help increase openly promote such change in order to have representatives on the management the average involvement of supporters increase clubs’ attractiveness towards and/or supervisory boards of their clubs. groups’ in the running of their clubs. investors. However, so far Bayern Munich We will give examples of supporters’ Thus, the various club statutes need to be and Borussia Dortmund are the only influence in their clubs in the section on analysed and a best practice document professional football clubs that have fan culture later in this report. drawn up on the basis of the findings, external investors. In other words, the which could function as a guide for other limited companies in the Bundesliga · Club Statutes members’ groups. Supporters could then are still 100% owned by their parent clubs, design their own statutes tailored to their the members’ associations. Every professional football club is bound particular needs based on this model. Generally, the structure of limited by its statutes74. Many statutes refer to companies does not entitle shareholders socio-political issues, defining members’ · Instruments for the members’ to directly appoint the management board democratic rights and the exercise meeting and they only have the right to appoint of those rights. However, apart from the supervisory board through the meeting the basic legal requirements The mechanisms of members’ meetings general meeting. However, shareholders set by the BGB, the statutes of football are defined in the statutes of the clubs. would need a three-quarter majority of clubs are different from club to club and For example, if the management and votes to change the composition of the are influenced by various factors. In an supervisory boards act as one institution supervisory board, which due to the effort to set certain standards, the DFL and lose their separate rights and 50+ rule is impossible in football clubs. has issued guidelines for the design assigned duties, the members’ meeting This distribution of shares results in of statutes. However, transparency, will no longer have much influence shareholders having a restricted influence especially the accessibility of club through the supervisory board. Even at general meetings. statutes, is highly variable, with one study though many club statutes state that Our research has shown that the finding that out of 36 professional football the members meeting can appoint and cooperation between management clubs only 14 put their statutes on their dismiss the management board, this and supervisory boards depends on website75. instrument is generally only considered

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY to be an option of last resort, with structural inclusion. Besides the formal transparency and credibility, and protect the procedures for re-electing a new structures that can guarantee a certain their creditors79. Overall, the aim is to board stated in the statutes. Less degree of fan influence, almost all football reduce overspending by forcing all clubs influential measures include provisions clubs in the first and second division have to follow a planning procedure and apply for the election of the board or electing regular informal meetings with their fans for a license80. committee, which then elects the and many supporters feel that they have Fundamentally, Bundesliga (first board, at the members’ meeting. more influence through these informal and second division) and Regionalliga There are different options in place, than formal structures. clubs have to be financially accountable which are variable among clubs, but (from the 2008/09 season on the overall the instruments available to the 2.2.8. Community Involvement of Regionalliga together with the 3. Liga members’ meeting for sanctioning club Clubs will be organised by the DFB, not by the management are limited. In Germany football clubs are usually DFL anymore). A series of documents Written proposals by the members members’ associations, or at least needs to be presented, according to § 8 can be handed over to the management the members’ associations own the LO, which includes a balance sheet and board at the members’ meeting. incorporated professional football units. profit and loss data for the most recent However, these applications or In both cases, the members of these and current playing year, together with a proposals are bound by regulations associations are the heart of the club. forecast budget for the season for which which are stricter in some clubs than These associations, however, are more the license is required. Furthermore, the others. Examples include members than just football clubs, as they offer a applicant needs to assure the payment being bound by deadlines or required to variety of sports and other activities to of any unpaid transfer commitments or obtain a certain amount of signatures, their members. provide evidence of an agreement on while others require authorisation from These clubs are deeply rooted in the revised payment terms81. The applicant the supervisory board before they can be community. Members’ associations are also has to give detailed information handed to the management board. highly dependent on their members and about holdings in other companies. The Members are dependent on the the fees they pay to be part of the club; most important aspect of the economic information they have, and transparency the more members, the better for the viability rating is the applicant’s liquidity is important to provide members with clubs. Services are offered to members to ensure obligations to creditors are met the information needed to make valuable due to the clubs’ dependency on them. and the club’s operations are maintained. contributions to the democratic decision- These include holiday and school trips, Additional obligations have to be making processes at the meeting. various activity groups, tournaments and fulfilled by clubs that report negative By law, certain materials, such as the barbecues. They often also have close equity82. The validity of the presented annual report, have to be provided by links to schools and other sports clubs documents is checked and certified by the management or supervisory board. in the area, and some even train sports an auditor appointed by the DFL83 while However, there is huge latitude when teachers. They offer their facilities to the licensing committee decides any it comes to deciding of exactly what community groups, offer internships and, further requirements. The entire licensing information should be available to the in general, provide activities for almost procedure is carried out within football. members within those reports. While every age group. Members’ associations Financial performance difficulties it is obviously difficult to provide all have a long tradition in all aspects of that emerge throughout the season available information, members have a German life and almost every member of are counteracted by business plans responsibility to demand the information the population is, or has been, a member developed either solely by the clubs they feel is relevant and best enables them of at least one members’ association. themselves or in cooperation with the to participate intelligently at their meeting. The social or community management DFL. Clubs have to submit a “cash The influence of the members’ department of SV Werder Bremen is worth security deposit” into a DFL trust account meeting varies from club to club and noting here. The department “social to assure the payment of staff in case tends to be higher at clubs where management” is solely dedicated to of insolvency, a provision based on the there are lobbying groups influencing promoting the clubs’ community projects idea that any financial difficulties a single proposals and exercising general and it aims to expand their community club has could negatively impact on the influence over the management board. project of 100 schools and 100 clubs to viability of others. Such security savings However, attendance at members’ primary schools, nurseries, social benefit assured the clubs’ operations after the meetings is often low. facilities and educational programmes. Kirch-crisis, when KirchMedia went Cooperation with institutions abroad will into administration in April 2002 and the · General and Formal Contact with the also be established77. Bundesliga TV rights were renegotiated, Board FC Schalke 04 has taken a leading but with a significant reduction in right step in terms of community integration fees. Overall, the licensing system As mentioned before, the level of contact through the stated aim of “promoting intends to assure the liquidity of clubs, between members and the board the social integration of immigrant safeguarding the game and the league. is different from club to club. Some citizens”78. From this, questions can be asked clubs have fan representatives on their regarding how the financial situation of boards, while others do not even have a 2.3. Financial Regulation – Licensing the clubs in the Bundesliga has been supporters’ club or fan division included System affected by the impact of the license in their structure. In several cases, the The football authorities’ scrutiny of the system? Is there proof that the licensing supporters clubs have deliberately kept clubs’ economic data is intended to system is able to reduce hyperactivity or their independence and avoided any improve their financial reliability, increase a reckless competition for resources?

%8%#54)6%35--!29 'ERMANY The DFL’s requirement that liquidity be system provides an environment of certain revenue96. The largest source of proven enables the safeguarding of the quality standards, which have been revenue for the Bundesliga comes from following season’s games. The Bundesliga approved with best marks by UEFA, that sponsorship (€360 million) and the lowest has still not reported any insolvencies, not have to be achieved for participation in the income from commercial sources (€208 even following the Kirch-crisis84. However, respective leagues and competitions. The million), which at the same time is the according to Ernst & Young in 2005, a positive influence the licensing system has highest commercial revenue income in growing number of Bundesliga clubs have on the financial performance of clubs is European football. reported negative equity and the reported reflected in the reported operating profits Matchday revenue has been boosted debts are causing the management boards of all 18 Bundesliga clubs in the 2006/07 by 30% to €302 million since the World serious concerns85. Borussia Dortmund season. Cup in 2006. €1.9 billion was invested in was able to accumulate a loss of nearly From the 2008/09 season on, the 3. Bundesliga stadiums prior to the World €68 million in 2003/04 and experienced Liga and Regionalliga will be organised Cup, with 7% coming from the clubs a liquidity gap of €30 million just a few by the DFB, bound to their own licensing themselves, 44% from stadium operators months after it received a licence from the system91. Similarly to the Bundesliga and and 49% contributed by third parties97. DFL. Other clubs like 1. FC Kaiserslautern, 2 Bundesliga, in addition to sporting and The improved facilities now attract more Sachsen Leipzig and Carl Zeiss Jena, for economic conditions and infrastructure, corporate clients and football fans, and example, are in serious financial trouble. security, media and administrative the Bundesliga now has the highest For the first time, the DFL has to check the requirements have to be fulfilled. Before average league match attendance in accounts of 14 professional clubs (seven the start of the first season of the 3. Liga Europe, which was estimated at 37,100 from division one and seven from division all 20 qualified football clubs received a during 2007/0898. Although demand has two) after they had already received a license. The decision was made by the increased ticket prices have remained license for the next season. Essentially, DFB, after the economic, technical and more or less constant over the years99, those clubs have had to go through a organisational capacity of the candidates and they are still among the lowest of the second licensing procedure in October was evaluated92. With regards to the new big five leagues. An average ticket for a each year. This has resulted in only one Regionalliga several clubs did not meet all Bundesliga game in the 2007/08 season of the 14 clubs having to fulfil additional licensing requirements and hence did not cost €19.47 (net and excluding any fees). requirements, which regarded remedying receive a license. One club withdrew its During the summer 2007 transfer certain transfer irregularities, by the end application because of financial issues. window, Bundesliga clubs spent record of January 200886. figures on new players. The 18 clubs The DFL’s ability to make decisions 2.4. Financial Performance of the first division spent an estimated on license applications independently €203.7 million, compared to €147 million or objectively is highly questionable. 2.4.1. The Bundesliga in the previous year100, with Bayern The DFL is not only authorised to In 2006/07 the German Bundesliga Munich alone spending €69 million. regulate the licenses required by the recorded an increase in operating profits Many other clubs behaved similarly in clubs, but also to market the leagues. In of €168m (206%) to €250m, €109m more the 2006/07 season, spending more than other words ‘the licensing procedure is that the English Premier League (€141m) 93 they have ever done before. This trend operated by the clubs’ own association’, and is the most profitable league in continued even in those lower league and accordingly ‘the DFL has no more Europe. The key to the Bundesliga’s clubs that were financially backed by power than that granted by its members, growth in operating profits was in limiting private investors. Other clubs refused to the clubs’87. Hence, the DFL is not able wage cost growth to only €12m (2%) jump onto the bandwagon and continued to question or even interpret the data in 2006/07, despite the €184m (15%) to follow a more sensible spending provided by the clubs88. The fundamental increase in revenue. policy. As mentioned earlier, the German problem for Bundesliga clubs is the lack Together with the Spanish ,A ,IGA licensing system sets costs against of transparency in the clubs’ financial the Bundesliga achieved the highest revenues to avoid the clubs overspending activities: ‘In contrast to other industries, percentage increase in revenue, both up and in October 2007, 14 professional the clubs in the Bundesliga do not need to 15%, and, as predicted, overtook 3ERIE! clubs (seven from each division) had to present as detailed financial statements.’89 as the second highest earning leagues. go through a post licensing process due Not even clubs that have incorporated The Bundesliga reached record turnovers to their poor financial performance, but their professional football departments of €1,45 billion according to the numbers received the license in the end101. Most are bound by German company law and, released by the League. Five German impressively, all 18 Bundesliga clubs as Dietl and Franck point out, they are clubs are among the 25 richest clubs reported operating profits in 2006/07 (up still treated like members’ associations in Europe94, of which Bayern Munich, from 12 clubs in 2005/06)102. even though they fall under company law Werder Bremen and Hamburg SV have jurisdictions90. accumulated no debts at all. The DFL is currently only able to check The Bundesliga earns the least from whether the clubs’ liquidity allows them to broadcasting income when compared survive the next season based on profit to the other four big leagues in Europe and loss data. As trustee of the league, (€480 million compared to €732 million the DFL does not take corrective action in 3ERIE! and €880 million in the Premier concerning the financial situation of the League)95. Although a €440 million deal clubs. Nevertheless, the DFL regulates has been signed for three years from the equity capital of clubs to reduce risks the 2006/07 season onwards, Deloitte and cover liabilities by setting boundaries predicts that the Bundesliga will remain for negative equity capital. The licensing the least dependent on broadcasting

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY as members of the same club. Despite the .UMBEROFCLUBSREPORTINGOPERATINGPROüTS criticism fans have for the management of     the club, we witnessed a certain level of trust in the management of the clubs not "UNDESLIGA 9 14 12 18 seen in other countries. "UNDESLIGA 9 10 9 12 Overall, fans see themselves as having informal power to resist changes they 4OTAL     disapprove of, as has been demonstrated 3OURCE"UNDESLIGA2EPORT in many cases107. Recently, the atmosphere has been charged due to the 2.4. 3. Liga, Regionalliga and Oberliga this time the social image and the hierarchy DFL introducing new kick-off times for the (Third and Fourth Division (until 2007/08 within English fan groups was relatively 2009/10 season. The supporters disagree Season)) new to German football fans. However, in with these new schedules and several fan All 3. Liga clubs receive approximately the last 30 years fan culture in Germany groups have announced protests for the €590,000 in revenue from the TV contract has developed unique features compared beginning of next season. per year but the burdens the clubs face are to their European counterparts104. One could currently speak of a dynamic immense. For all 20 clubs in the 3. Liga, the The 36 professional football clubs sampling of fan culture in Germany, and costs of competing in the new league will have a combined membership of almost the fan officers at the DFB and DFL, be a concern, e.g. the DFB requires that 600,000105, and this number is continuing and the current forums established in all 3. Liga stadia need to be improved and to increase. Some clubs have experienced Germany, allow organised fan groups the accommodate 10,000 spectators, with difficulties in meeting the subsequent opportunity to be heard and to put their at least 2,000 seats on offer. The license rising demand and have had to cease agendas forward108. These official links also requests the establishment of youth selling season tickets. Borussia Dortmund require a certain level of professionalism academies. Additionally, travel expenses established a Bundesliga record by having within the various fan groups, from defining will rise dramatically and so will player sold 50,549 season tickets in 2008106. The their objectives to organising their actual costs. For many clubs, the renovation average attendance at Bundesliga matches structure. of their home ground will be the biggest is 37,644, the highest gate attendance Overall, German fan culture currently expense, and this has led to the greatest figure in Europe. seems to be in a transitional phase, where discord between the DFB and the clubs. However, these numbers are only the groups are more involved and are The 37 clubs of the north and south limited indicators for fan culture or fan demanding more rights, while also having regions of the former Regionalliga (third involvement. For many fans it is impossible to come to terms with the corresponding division) have been reduced to 20 with the to get tickets (especially for away games) responsibilities. formation of the 3. Liga. The remaining unless they are members of the club. In Germany national football supporters 17 clubs are placed in the fourth division In German football, there are five pillars groups are comparatively diverse, as (new Regionalliga), which has led to the of fan representation worth mentioning Germany has the highest number of clubs trying to raise spending to avoid here: independent supporters clubs, nationally organised supporters groups in relegation. As a result the costs in the Fanabteilungen (fan departments of Europe. On the national level we will give Regionalliga have been similar to the costs the club), fan initiatives, Ultra groups an overview of various groups and their of the second division, but their TV income and national supporters groups. Some structures and objectives. for the 2007/08 season was only €375,000, groups have formed associations without while for the 2008/09 season clubs will (not registered) or with legal capacity 3.1. Independent Supporters’ Clubs receive € 5 million. Hence, many ambitious (registered), while others simply take Supporters’ clubs are umbrella groups of clubs risk facing administration after only a the informal status of interest groups. various fan clubs that representing their few years. Separated from the fan representative members. Supporters’ and fan clubs have The situation in the former fourth bodies, but still worth mentioning, are various aims and objectives and are often division, the /BERLIGA, looks different. With the concept of fan projects and their organised as members’ associations. They the establishment up of the 3. Liga, the contribution to the community, and the avoid any structural inclusion and have Oberliga divisions have been reduced from existence of fan liaison officers at the deliberately kept their independence from nine to three and everything below will clubs who mediate between fans and club the football clubs. not be sufficiently attractive to sponsors management. Examples of supporters’ An example worth mentioning here anymore. Notably, many clubs risked clubs at football clubs will be included, as is the Schalker Fan-Club Verband. The everything to remain in the league and their specific experiences provide valuable independent supporters’ club is working several clubs will most likely collapse in insights into the actual fan culture at on new statutes together with the the event of failure, while others already professional football clubs. management and supervisory boards of face administration or are at least close to Generally, football supporters in the club. The independent supporters’ insolvency103. Germany seem to be more involved than club has a representative member on the their counterparts in other European supervisory board of the club and the club countries, and many football clubs in president is on the management board 3. Fan Culture Germany follow a comparatively informal of the fan group. The supporters’ club and open approach communicating describes the relationship between the In Germany, the first supporters’ clubs with fans. The clubs’ management and club management and organised fans as were founded as a result of the 1974 World supporters meet on a regular basis, which good. The collective aim is to win games, Cup, held in Germany, and were hugely characterises their relationship to a certain but more importance is given to keeping influenced by English fan culture. During extent; often it seems they meet together the club’s identity.

%8%#54)6%35--!29 'ERMANY Other examples of good cooperation members of the HSV Supporters’ Club. for example, Ultra groups are members of between the fan groups and club The members of the supporters’ club send the HSV Supporters club, which is a sub- management include those where the a representative to the management board, department of the club. organised fan groups are not just involved while the supporters’ club has at least one Generally, the relationship to the in fan projects, but also in traditional representative on the supervisory board as authorities is naturally hostile and tense supporters’ club duties such as securing well. All four members on the management in particular after the announcement of away tickets and travel arrangements109. board have equal influence, and so they the new kick-off times for the 2009/10 Several supporters clubs and the clubs’ each have one vote that amounts to 25%. season. However, there is a formal contact management initiate regular stakeholder The members’ representative on the between Ultra groups and the officials workshops where all fan related issues management board is one of the founders through regular meetings between the can be discussed. In these cases, the of the supporters’ club and in close authorities with fan groups including groups are often the only accepted and contact with the group. The supporters’ 0RO&ANS, a collective group of various respected fan groups of the club and the club has 15 full-time employees, while their different Ultra groups. In contrast to the pressure is on for it to act on behalf of five managers have a voluntary status. The perception of Ultras by the authorities in the fans. The Fanbeirat at Frankfurt for group manages, INTERALIA, away ticketing, other countries, the president of the DFB, example, represents all relevant fan groups and keeps 10% of the ticket price to cover Theo Zwanziger, publicly suggests that no like the &ANABTEILUNG, &ANPROJEKT, Ultras, expenses. The HSV Supporters’ Club club should dismiss Ultras as radicals and &ANBEAUFTRAGTE and &ANSPRECHER110. The is included in the club in such a way that a security problem, but rather view them as &ANBEIRAT acts as an advisor and meets no decision can be made at the members groups that seek to preserve fan culture117. regularly with the management board of meeting without their consent, e.g., they The actual implementation of such the club, the &USSBALL!', security officers, voted against a proposed structural change recommendations and the actual view on the police and other stakeholders111. into a limited company and so the club is this of Ultra groups themselves cannot be Another example is the 3PRECHERRAT still a members’ association. The group’s analysed here. 32) (Council/Committee) at FC St. Pauli, influence and professional organisation which represents all registered fan clubs is widely known and respected by other 3.4. Fan Initiatives and closely co-operates with the &ANLADEN supporters groups. They also give advice Fan initiatives, where fans form loose groups and the club for fan related issues112. and have a powerful voice in the national to lobby for a particular cause, are another The club officially acknowledges the supporters’ group 5NSERE+URVE. form of fan representation. The initiative &ANRAT of FC Bayern Muenchen as the “Pro 15.30” (now known as ProFans) representative body of supporters. The 3.3. Ultra Groups operated nationwide and promoted for panel represents the interests of both fans Generally being an Ultra is about the kick-off times to happen at 15.30 on and fan clubs of Bayern Munich, as well as “MENTALIT÷ 5LTR÷”, about an attitude, Saturdays118. Local initiatives, especially in other groups and entities. It sees itself as a towards one’s own life as a fan, ones the lower divisions where many clubs are contact point for all stakeholders and fans. role as part of the club, the curve and as close to administration, aim to raise money, The club financially supports the &ANRAT113. part of the group. The Ultrà phenomenon increase membership, and try to secure There are also official/registered and is extremely complex and divers, with sponsorships for their clubs119. unofficial fan groups, whose relationships different structures, identities, rules and Another example is the 4RADITIONSRETTER with each other vary. At TSV 1860 Munich agendas, which makes it difficult to explain (tradition saviours) at the KFC Uerdingen for example, the official fan clubs are the various mentalities. Hence a detailed 05. The KFC Uerdingen 05 plays in members of ARGE114, which has no analysis would go beyond the scope of the fourth division and is close to relationship with the independent initiative this report and has to give way to a few administration. The group Traditionsretter „Freunde des sechziger Stadions e.V.“115. examples of Ultra participation at several and other initiatives raised money to help clubs116. Also, in contrast to Italy where fan save the club. Throughout our research we 3.2. Fanabteilungen (Fan Departments) culture means ultra culture, in Germany found several groups who collected money Fan departments (&ANABTEILUNGEN), the Ultra culture is one of several fan cultures to save their club. The difference here is groups representing the interests of existent. that the Traditionsretter did not stop once fans, are integrated into the governance In general Ultra groups are independent the money was raised and their objectives structure of their club. Members of the fan from their clubs, but relationships vary. are much wider than other groups. They departments are also members of the club Some groups are more involved with the claim members should be engaged in the whom they are working for. The idea is to management of the clubs than others. As decision-making processes via the internet create a more supportive environment mentioned before the Ultras Frankfurt for instead of being involved only once a year that allows fans to be actively involved in example are represented in the &ANBEIRAT at the AGM. Considering the members of a club’s decision-making processes. The FAN COUNCILCOMMITTEE at Eintracht an e.V. are not able to buy any shares in &ANABTEILUNGEN have representatives on the Frankfurt, which represents all relevant their club, they plan to increase the general boards of the club, although the impact of fan groups, advising and meeting regularly influence, capability and professionalism of the fan representatives on the board can be with the management board of the club, the various club divisions by amending the questioned. In general, they can only bring security officers, the police and other club statutes accordingly. The group warns the same influence to bear as any other stakeholders. However, most groups do that the general philosophy of members’ representative of the supervisory board. not have such a formal relationship to the associations has to be changed to increase The history of the HSV Supporters’ club but rather have an influence through the level of influence and involvement the Club, which is the &ANABTEILUNG of the club, informal links. The informal influence Ultra club members hold, insofar as members is worth mentioning here. The club itself is a groups have also varies and in some case need to be aware of their responsibilities members’ association with around 50,000 is wider than in others. The relationship to and the fact that board members, and members, of which around 45,000 are also supporters clubs also varies. At Hamburg, other club employees, are the executive

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY groups within the club. The transformation of the FanbeauftragtE, published in 2008. of Bundesliga clubs (first and second into a club run by its members has been The handbook professionalises the division) should generally not be employed laid out in detail120. position of the fan liaison officers and on a voluntary basis, but should be paid. The governance structure of the becomes part of the licensing system for The group has also made clear the difficult club has been split into six correlating the 2008/09 season. From the following mediator role that fan representatives, who departments that will all have to be run season Fanbeauftragte have to be paid by are employed by the club and bound by in a transparent manner by functional the clubs. certain instructions, must perform, leading directors. Important decisions would have The fan liaison officer’s overall aim to the concurrent need for support from to be published promptly on an internet- is to build a bridge between the club and their respective clubs. based information platform. The members its fans and to preserve and increase its of the club should feel responsible to fan scene. Hence the job profile of fan 3.6. Fan Projects access this information. In order to prepare coordinators is relatively diverse and ‘Fan projects serve as a mainly independent discussions, working groups should meet challenging: they inform the fans about mediating interface between all relevant in forums to discuss proposals made by the relevant decisions made by the board parties in football, particularly supporters, board in more detail/depth. A businessman and in the other direction communicate clubs and regulatory bodies. One of their has paid another euro 100,000 and the needs of the fans to the board, build major tasks is to provide a permanent requested a post on the management relationships not just with fans but with the communication channel between board of this club. However, it remains to police and security officers, fan projects supporters (mainly Ultras) and the club, to be seen whether this was a pre-financing and also engage with fan liaison officers improve mutual understanding and thus to or donation deal. The funding of the of other clubs before matches to ensure initiate sustainable and positive structural second part of the 2007/08 season and the that the fans behave in accordance with and ideological changes on both sides’124. following are also not clarified. At present security guidelines122. The projects mainly concentrate on social there are no concrete statements from The number of fan liaison officers work and have no financial interests125, with the new provisional executive committee varies between clubs, depending on the cultural and educational projects aiming to regarding their future plans. The group size and the club’s acknowledgement of prevent violence among youth. Notably, have asked Supporters Direct for guidance the respective fan scene. Until recently, fan projects are not part of the club, but with regards to campaigning, fundraising fan liaison officers had no standard status part of youth development institutions, and strategic procedures to move their and, as noted, some officers worked another members’ association or the plans forward. on a voluntary basis, while others were city. However, the &# 3T 0AULI &ANLADEN employed fulltime by their club. As this (fan project FC St. Pauli) for example 3.5. Fan Liaison Officers intermediary position between the fans underlines that despite its independency The security guidelines for Bundesliga and and club is challenging, fan groups have from the club, the project’s acceptance Regionalliga games, § 30 (SiRiLi), provide been pressing for more professionalism and impact on its environment should not for the inclusion of a so-called fan liaison and beginning to demand guidelines and be underestimated126. The closest possible officer (called &ANBEAUFTRAGTE in German) full-time positions for fan liaison officers cooperation with the relevant fan groups into the governance structure of the clubs. in the first three leagues. As a result, the and representatives of the club hierarchy Moreover, § 5 of the Licensing system handbook for Fanbeauftragte has been at FC St. Pauli is a main criterion for the St. regulates that each clubs has to appoint a drafted by the fan manager from the DFL Pauli fan project, whose social workers see fan liaison officer and has to report his or and fan liaison officers from several clubs, themselves as representatives and critical her name to the DFL. while the DFB has separately produced observers of the fans of FC St. Pauli, while Since the early 1990s, in general, every guidelines for the lower leagues. The acting as an intermediary between the fans professional football club has to have a fan Bundesliga handbook for fan liaison and the club. liaison officer, either employed by the club officers provides a general overview of Fan projects have existed for nearly 15 or working on a voluntary basis. These fan groups within the Bundesliga, but years and are financed by the respective officers often come out of the fan scene121, more importantly it also provides practical Laender, cities and either the DFB or the sometimes even from the Fanabteilungen guidance. It contains detailed outlines of DFL, while fan liaison officers have to and supporters clubs (and at Borussia the professional requirements and personal request financial support from the clubs. Dortmund even from the Ultras), but they competences required for the job and lists There has, and continues to be, criticism are ‘employed’ by their clubs. In these structural requirements that the clubs regarding the league using money from the cases, their influence is apparent as they should fulfill123. Additionally the DFL offers clubs to financially support fan projects. have a strong link to the supporters clubs training workshops for Fanbeautragte. Some suggest this money should go to the and are informed about financial issues. Fan liaison officers are organised fan liaison officers instead, as fan projects However, in many places the active fans in “$IE &ANBEAUFTRAGTEN”. This national are not corresponding with present needs do not acknowledge the views of the lobby group helps to define the duties of supporters anymore. Some fans not &ANBEAUFTRAGTEN as they are often seen of fan coordinators at football clubs and affiliated to fan projects note that fan as servants to their club. At Dortmund for provides competent technical guidance culture has been formally recognised by example it took a long time until the fan- for its members. It also promotes dialogue the implementation of fan representatives and club-cultural environment allowed for with the governing bodies and has asked at the clubs and the governing bodies, an Ultra to take the position as fan liaison the authorities to issue a handbook that and question the relevance of the classic officer. further outlines their duties. Their main aim pedagogical approach of fan projects and Nevertheless, not everyone can is to assist the clubs in maintaining and the ability to adjust to the new structures become a &ANBEAUFTRAGTER and applicants enlarging their fan scene, while making sure of fan activity in Germany127. However, have to fulfil certain professional they comply with security regulations. They implementation of such a change would requirements, as outlined in the Handbook also stress that the fan representatives cause the respective supporters to go

%8%#54)6%35--!29 'ERMANY into opposition against their clubs, which 'ROUP /BJECTIVES tends to be something German fans want to avoid by any means. The president of "!&& Racism in stadiums, repression, football and gender, standing in the stadium, national regulation for stadium bans, the DFB openly supports the concept of commercialisation, WM and Euro. Dialogue with DFB, DFL and fan projects and highlights the need for UEFA all stakeholders to fulfil their duties in the National regulation for stadium bans, socially acceptable ticket long-term to help counter racism, anti- )'5NSERE+URVE prices, strengthening of self-organised fan initiatives and support Semitism and other forms of violence. for the establishment of further fan initiatives. Dialogue with DFL, Overall, fan liaison officers in clubs support DFB and UEFA fan projects in their community and vice Ultra group promoting issues arising in and outside football versa. At FC St. Pauli, for example, a social 0RO&ANS stadiums, ranging from the predetermination of fixtures to the worker of the fan project is at the same abolition of stadium bans and other repression. Dialogue with time the fan liaison officer of the club. DFB and DFL KOS, the ‘+OORDINATIONSSTELLE Sub-department of the DFB &ANPROJEKTE’ (coordination of fan projects), &ANCLUB.ATIONAL MANNSCHAFT130 is the lobbying group of fan projects and was founded in 1993 in the context of the broader National Concept on 3.7.1. BAFF the treasurer and up to five assessors. Sport and Security concept (Nationales 4HE "UENDNIS !KTIVER &USSBALL &ANS BAFF’s members annually elect the board Konzept Sport und Sicherheit, NKSS)128. (Alliance of Active Football Fans (BAFF)) was for a one year term by simple majority. At The NKSS secured the funding for KOS formed in 1993 and was previously known the members’ meeting, members have through the public authorities (2/3) and as "UENDNISS !NTIFASCHISTISCHER &USSBALL authority over the management board, the DFB (1/3) (€4 million a year) and now &ANS(Alliance of Antifascist Football Fans) which is bound to its instructions132. supports the foundation of now 35 local 131. The group now represents some 200 BAFF have an activist background, fan projects. Fan projects are youth work supporters’ institutions including fan acting mostly through campaigns. There programs based on social integrative projects, independent fan groups, ultra is an internal lobby against dialogue with work independent of football clubs, but groups, as well as individual members, and the authorities, especially since the DFL are often incorporated into the agenda of is hugely respected by fan organisations introduced the new kick-off times for the supporters clubs129. and individuals around the country. BAFF 2009/10 season. The group is aware of the Another federation of fan projects sees itself as a representative in the socio- increasing pressure on the legal structure is the Bundesarbeitsgemeinschaft der political discourse in football. As stated in § of the members’ associations and the 50+1 Fanprojekte (BAG), the independent 2 of their statutes, their main objective is to rule and the subsequent potential threat, and national representative of fan projects. preserve fan culture, ranging from the live seeks to promote those structures through BAG sees itself as a critical lobby group stadium experience to social integration, initiatives planned in coordination with that speaks for the staff members of and to assist the influence of fans in the 5NSERE+URVE and 0RO&ANS. "!&& also plans local fan projects on a national and local running of their clubs as members. Racism, campaigns against the new kick-off times133. level. In contrast to KOS, the BAG is an discrimination and the commercialisation independent group of representatives of football are main issues for BAFF, which 3.7.2. Unsere Kurve of fan projects and is represented on the is a member of the European network FARE 5NSERE+URVE is an umbrella organisation board of KOS. (Football Against Racism in Europe). or national fan initiative (community The DFB organised a workshop for The group maintains an extensive of interests) that represents officially the evaluation of fan projects together network of contacts, including supporters’ organised football supporters, who with representatives of fan projects, KOS groups in and outside of Germany, the are recognised and accepted by their and BAG. The outcome was positive, but DFB, DFL and the media. The group is clubs and the DFB and DFL as well. it was observed that the fan projects vary involved in the formal dialogue between the Founded in 2005 by the Fanabteilung in the quality of their work. With regards to DFB and DFL, 5NSERE+URVE and 0RO&ANS, Frankfurt, HSV Supporters Club and the representative bodies of fan projects e.g. BAFF is a member of the !'&ANDIALOG the BVB Fanabteilung, Unsere Kurve the DFB suggested that KOS should step and the 3TADIONVERBOTSGRUPPE. BAFF was defines themselves as “realists” and down from its representative status and one of two German representatives invited pragmatists, not revolutionaries134. Their should take a more quality-managing role, to the fan meeting at UEFA on 4 December aim is to lobby for supporters’ interests organising management training and best 2007. However, the group is highly through constructive dialogue with practice workshops. It was also suggested sceptical of the value of any dialogue with football clubs, the governing bodies, that the BAG should step up to become the authorities. and other policy makers, all supported the true representative of fan projects. BAFF is a registered members by a realistic and achievable agenda. In association, with principles that are contrast to supporters’ clubs and fan 3.7. National Fan Groups exclusively not-for profit. Anybody can projects, which are embedded into the Germany has the highest number of join the group if their written application political and cultural conditions of their nationally organised supporters groups in has been approved by the board in the respective clubs, Unsere Kurve sees itself Europe. All groups listed here are recognised presence of its members. The scale of the as preserving fan culture through being a by DFB and the DFL and are in regular annual members’ fee is chosen by vote representative of organised fan groups135. formal and informal contact with the football at the general meeting. The association Their motto is, “separated in colour, united authorities. The groups listed here often consists of the board and the general in cause”. overlap in terms of their objectives, based on meeting. The board consists of the chief Unsere Kurve, together with BAFF the different generations that founded them. executive, the deputy chief executive, and ProFans, lobbies for a national

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY regulation governing stadium bans, being too conservative and consensus 3.8. Dialogue with the Authorities which has just been achieved in the friendly. Nevertheless, the group has new 3TADIONVERBOTSRICHTLINIEN, socially been very supportive with regards to the 3.8.1. Formal and Informal Links to the acceptable ticket prices, strengthening feasibility study, although they have been DFB and the DFL of self-organised fan initiatives, and critical about UEFA’s involvement as In June 2007 the DFL and DFB organised support for the establishment of previously mentioned. Nevertheless, they the “&AN +ONGRESS” in Leipzig to promote further fan initiatives. Unsere Kurve is a could see themselves as a partner of a an open dialog between the DFB, the community of interest, not a member’s Supporters Direct Europe in Germany. DFL, and the fan groups and initiatives; association, which avoids bureaucracy by Unsere Kurve, BAFF, ProFans and other 420 participants, including fans from using the already established resources supporters groups fan projects and fan over 50 football clubs in the Bundesliga and communication channels of their liaison officers were involved in the fan forum (first and second division), Regionalligen members. Nationwide meetings are held with the DFB and the DFL, held in February (third division), and amateur leagues, were four times a year. 2007, where the agenda for the Leipzig fan present. The fan groups participating were The group grew very quickly and, congress was established. Furthermore, invited from the fan groups themselves two years after its formation, now Unsere Kurve suggested the foundation who helped to organise the event. Several claims to represent more than 130,000 behind the AG Fandialog, of an ongoing workshops dealt with a variety of topics organised fans. This growth is a result of it workshop for national supporters groups, ranging from fan cultures and anti- representing the fan groups of the biggest fan initiatives and the governing bodies discrimination to areas of conflict like clubs in the Bundesliga, and its aim to of football post-Leipzig. The AG has been stadium bans. Each workshop produced unite and represent all organised fans of meeting on a regular basis since September a catalogue of special demands on fans, all football clubs in the first three divisions. 2007. Unsere Kurve is probably the most the clubs, the authorities and politicians Nevertheless, the group’s growth has serious and accepted fan group where the and highlighted areas for improvement. stagnated recently and it seems that DFB is concerned, and UEFA also invited The catalogue stressed the importance of the rapid growth has caused a vacuum its spokesperson to the UEFA fan meeting the preservation of the 50+1 rule and the regarding their provision of services. As in Nyon on 4 December 2007137. However, involvement of supporters in the decision- the group appears to be in a ‘transition notably the reputation of Unsere Kurve is making processes at their clubs INTER phase’ it might require help setting up partly influenced by BAFF’s rather negative ALIA141. The overall conclusion was positive, services for its members. Another issue reputation with the authorities, especially but there were also critical voices, e.g. is the lack of acceptance among other after the “Tatort Stadion” exhibition, where regarding the absence of certain official groups. Their relaxed structure provides the former President of the DFB was contact persons in the workshops and the them with flexibility regarding decision- portrayed as a fascist138. lack of constructive dialogue. However, making processes and reaction strategies, based on the generally positive outcome it but in the long term it will be difficult to 3.7.3. Pro Fans was agreed to set up a workshop, the “!' offer advice and guidance to fan groups 0RO&ANS is a collective group of various &ANDIALOG”, for regular meetings, between as no sufficient (legal) structure exists for different Ultra groups, and it claims representatives from the relevant fan groups the allocation of responsibilities or the to have representatives at 30-35 (BAFF, ProFans and Unsere Kurve) and offer of services. professional football clubs139. The group officials from the DFB and DFL, to further Unsere Kurve aims to deliver some stands for issues and against repressive pursue the dialog. sort of development aid to fans”136. They measures that arise inside and outside The AG Fandialog met for the first time believe that clubs often lack identifiable football stadiums, which range from the about two months after the Fan Kongress. governance structures, which makes it predetermination of fixtures to the abolition The aim was to achieve a consensus, by not only difficult to liaise with existing fan of stadium bans. The group emerged out of the end of 2007, on the nine-point plan groups, but also to help set up organised the “Pro 15.30” initiative and it is a platform established in Leipzig142. The general fan groups. Hence, the group have that has variable activity. They have been perception regarding the AG Fandialog was developed a catalogue of activities for responsible for most of the big, visual rather positive, but the expectations of the helping fans to set up organised fan groups campaigns in the stadiums nationwide140. various parties differed and the dialogues and increase its influence. The catalogue The group also organised the Frankfurt among the various groups and the lists basic research on existing fan groups rally in 2005, where 2000 football fans from authorities became challenging. The DFL and spokespeople, with an overview on clubs in the first four divisions protested thought of the meeting as an expert panel, ownership structures in professional against police arbitrariness and repression whilst the fan representatives were outcome football clubs in Germany. The group also under the slogan “football fans offside”. driven and sought concrete solutions. plans to commission a study on fan culture The demonstration was a resounding Critics have observed that there were too in Germany. success. many topics on the agendas and not enough The group also promotes a regular ProFans is the main contact point for experts present, which the fans themselves dialogue with the DFB, the DFL and the DFB where questions surrounding criticized some of their own groups for politicians, with an aim to overcome the the command of stadium atmosphere are their lack of constructive contribution. unbalanced relationship between fans concerned. They are also a member of the The groups also criticised the lack of and their clubs and generally increase Stadionverbotsgruppe and they will be information policies and transparency at the the supporter involvement in their club’s involved in future initiatives that promote the DFB. However, the attending parties have decision making processes. Unsere 51% rule. ProFans is organising campaigns described the relationship between the Kurve has a very proactive approach, as against the new kick-off times that are being President of the DFB and the fan groups as they demand things that almost cannot introduced by the DFL, and these will begin positive and respectful. be neglected by the authorities. However, at the start of the next season if the DFL Furthermore, the tense relationship it has been criticized by other groups for sticks to its current schedule. between the DFB and DFL was apparent,

%8%#54)6%35--!29 'ERMANY and supporters expressed their concerns fan contact officers were appointed at critical points regarding fan culture in regarding the shift of responsibilities the DFB and DFL. Their aim is to improve Germany regard some groups’ reluctance between the two organisations. communication between the fans and the to take responsibility. At the fan congress Another group, the governing bodies, and to professionalise in Leipzig, the groups issued a catalogue “3TADIONVERBOTSGRUPPE” (Group for fan liaison officers at clubs. They channel of demands with no order of priority. We stadium bans) has worked on a revised the communication between fans and also found that responsibilities of fan version of the existing guidelines for the DFB and DFL. The officer at the DFL projects, Fanraeten, Fanbeauftragten stadium bans. The position paper was is responsible for the Bundesliga and 2. and other institutions often overlap. produced in Frankfurt and presented Bundesliga, while the fan contact officer The supporters groups are the critical at the 7th national meeting of Unsere of the DFB works with fans from the lower conscience of football culture and for the Kurve on 20 January 2007 and sent to the leagues. However, their responsibilities sake of authentic discussions they need to President of the DFB. The paper was also do not seem to be clearly defined, as fan define whom they actually represent. Each discussed at the Fan Kongress in Leipzig groups from the Bundesliga often contact group claims exclusive authority, but they in June the same year. The group is closely the fan officer of the DFB, even though they often do not take responsibility. negotiating with the DFB, which is, next to should be in contact with his counterpart The existence of members’ associations the police, responsible for security issues at the DFL. and the 50+1 rule makes it impossible and in German football143. On 31 March 2008, The fan officer from the DFL has unnecessary to set up trusts as we know stadium ban guidelines were amended worked closely with fan liaison officers them from the UK. What is needed instead is accordingly as a result of this paper144. from Bundesliga clubs on a handbook that a consultancy that helps to overcome existing One of the major changes is the reduction clearly defines their responsibilities. The weaknesses by offering relevant services of the maximum stadium ban duration officer at the DFB has also produced a and advice on fan involvement in the running from five to three years. Additionally, under document of best practices, which is part of their clubs, and in assisting groups to help certain circumstances future bans will be of his workshops for the fan liaison officers fans establish those services themselves if suspended. However, the basic structure of at lower league clubs. Notably, these two wanted. The research discovered several the stadium ban has remained unchanged, sets of guidelines have not been produced weaknesses within the current German and so many groups are critical about collectively. system, which have been outlined above. the outcome145. In addition, the national Both fan contact officers are accepted The following section tries to match those &ANRECHTEFONDS was founded in 2006 to by fan groups and fan liaison officers, with adequate services or advice, which provide legal support for fans with stadium although the degree of this acceptance we believe could help to strengthen the fan bans. The organisation is headed up by varies. While the fan officer of the DFB was movement in German football. representatives of Pro-Fans, BAFF, Unsere previously a fan liaison officer at a lower However, the requirement for a Kurve, several fan projects, four lawyers league club, the officer at the DFL used to Supporters Direct Europe other than in an and others who oversee the funding and be the head of KOS and dealt exclusively advisory capacity is questionable. Overall apportion donations146. The organisation is with fan projects based on social work. the following suggestions will not fit all, but funded among others by BAFF, Pro-Fans, As there are different opinions about the might be helpful for some. In any way they several fan projects, supporters clubs and importance of fan projects, and in particular would have to be tailored to the individual various Ultra groups. their funding, the tension seems to have needs of each fan group. There have also been several informal progressed into the relationship between meetings in addition to the formal contact fans and the two fan officers. Both officers 4.1. Adequate Legal Structures of between the fan groups and authorities. The actively take part in the !'&ANDIALOG, other Supporters Groups fan contact manager at the DFL attended workshops and discussion groups with As discussed earlier, the actual influence a meeting of Unsere Kurve in October supporters’ groups. that independent supporters clubs and 2007, where he raised two critical points: &ANABTEILUNGEN have is dependent on the first regarded the groups’ reluctance various factors: the ownership structure to take responsibility, and the second 4. Suggestions can play a role, and governance structures, surrounded the need for a clear definition club statutes and the fan culture at the of whom they actual represent. Additionally, There is a dynamic range of fan culture in respective clubs are the most relevant representatives of BAFF and Unsere Kurve Germany. Many organised fan groups are factors. The groups we spoke to made met the President of the DFB for informal involved in decision-making processes it very clear that there is no single model discussions about football fan culture at the clubs they support and have the of fan involvement in German football, in Germany three times so far. At these opportunity to be heard and put their neither for fan groups, which are part of the meetings, the groups criticized the lack of agendas forward through the fan managers clubs, nor for the independent groups. Our information policies and transparency at the at the DFB and DFL and the several existing research shows that the standards and DFB. However, all attending parties have forums for communication that are present levels of fan involvement in the running of described the relationship between the between the fan groups and the governing their clubs varies among clubs. Members’ President of the DFB and the fan groups as bodies. These official links require a certain associations do not automatically have a positive and respectful. level of professionalism within the various well organised and actively involved fan fan groups, from defining their objectives scene, and there is no charter for club 3.8.2 Fan Contact Officers at DFB to their actual structure. German fan statutes that helps members to increase, and DFL culture seems to be in a transition phase, or at least define, their rights. Nevertheless, The long-term approach of communication where the national fan groups are more several supporters’ groups have influence, and cooperation between supporters, the involved and demanding more rights, but through their association and board DFB and DFL became more formal after are also having to come to terms with the membership, by being represented on the the World Cup in 2006, when full-time corresponding responsibilities. The two boards of their football clubs.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY Where a professional football and ideas about how to improve every The professionalisation of a club department is converted into a share club’s statutes in terms of supporters’ is essential, and it is also crucial for limited company (GmbH & Co KG aA), the ownership and involvement in decision- allowing members the ability to elect supporters may theoretically gain influence making processes. accounting, finance and other clearly by becoming shareholders147. However, The guide could include, for example, needed specialists onto the management such procedure would be dependent on the a catalogue of required expertise among and supervisory boards. Members need legal outline set by the DFB and the DFL. different employees/executives, like to be informed about the positive impact To aid their participation in their club’s financial, marketing and media, and legal such experience will have on the boards. structure supporters are recommended to experience, which is recommended by the These professionals could come from act in the form of organised bodies, with DFL and could be drawn up with advice of the fans of the clubs, or from the outside the legal form of an e.V. appearing to be one fan groups and guidance from a Supporters if this is not required. The implementation of the best options for supporters clubs148. Direct Europe. Furthermore, the actual of professional fan representatives in It should be mentioned though, that if the design of the supervisory board should be the structure of the clubs should be sole purpose is the acquisition of shares put under consideration and laid out in the implemented into the club statutes as part this could legally collide with the non- statutes. The selection of members should of governance regulation. profit character of members associations. not just be based on their quality, but also The level of democracy could be However, as the DFB and DFL still consider on the social or business constituencies improved through enabling direct elections members associations as non-profit they represent. Sponsors, creditors, for the president of the management board organisations, despite the fact that they supporters and the community should be (where this is not the case already), allowing became the major shareholder in their represented and a regular information flow for a direct link with the daily running of the own joint stock companies who took over between the management and supervisory clubs. Additionally, all members meetings the economic part of their activities, the boards should be established. Most should be webcast and a system of purchase of stock could also be considered importantly, the members’ involvement internet voting established. Additionally, as a single secondary aim of the supporters’ in the decision-making processes within all minutes, reports and finances should be clubs. The structures of co-operatives clubs could be defined in the statutes in published within an agreed timeframe on (EEIG) are more difficult to realise, as the more detail. The statutes could also outline the appropriate websites and also possibly legal structures are more complex and how the remaining 49% of clubs structured posted to members. their purpose must be furtherance of their as limited companies should be treated. The lack of ongoing financial members’ specific interests149. Even though a best practice guide would accountability at several lower league be useful as a guide for individual clubs, clubs is a result of a failure in both 4.2. Governance Guidelines via Statutes each club’s individual circumstances, democracy and transparency. A far The most obvious conclusion of club- and fan culture would have to be more transparent annual budget-setting our research into fan involvement in considered when drawing up the statutes. exercise is required from the management the running of their clubs is that this Our research has shown that every club boards. Several options would then be involvement actually varies among clubs needs to be considered as an individual presented to the members in the form of a in ways that cannot be accounted for entity to a certain extent, despite the many referendum (with internet and email voting), simply by a club’s ownership structure. similarities among them. The club statutes which would include the implications for In other words, the fans and members could give fans the opportunity to increase debt, the playing budget, along a view/ of clubs do not necessarily have a great their formal influence in the running of recommendation from the board(s). The level of involvement, even when organised their clubs. Whether this is wanted or how finances should be disclosed quarterly on as a members’ association. In contrast, this should actually work in practice, is financial reporting/fans forums. there are fans and members of limited ultimately their decision, but nevertheless It is important that those with their companies who are very influential. Hence, the potential should be supported by some finger on the pulse of the operation should the aim should be to provide a certain useful guidelines. be able to provide an informed opinion, framework for fan involvement, which However, what several clubs seem to even if this may be perceived as influencing could be followed by the groups if they are require is an overall improvement in the the vote more than they should. willing to do so. overall level of democracy and transparency, Overall transparency could be improved Club statutes are the basis of any formal their engagement with their members, and if quarterly reporting meetings are run by supporters’ involvement in the running of especially the fans’ understanding of the their the properly established (formal and legal) their clubs. However, these statutes also club’s financial culture. Disconnections that fan group. This would also operate in vary between clubs; some members have often exist are not aided by the very limited tandem with the club’s &ANABTEILUNG, which a high degree of involvement regarding once a year democratic input that members essentially filtering queries and deals with decision-making processes at the club, have at annual meetings, and the additional complaints, etc. while others do not. absence of ongoing financial reporting by A catalogue or charter of model club the clubs’ board(s). A reconnection between 4.3. Conversion and 50+1 = More statutes could help to raise standards and the supporters and officials could demystify Democracy? Adequate Legal Structures help increase the average involvement of the clubs’ finances and operations, allow of Football Clubs supporters groups’ in the running of their appropriate democratisation without The legal structure of members’ clubs. Thus, the various club statutes hindering the managers and coaches associations has a long tradition in should be analysed and a best practice to operation of the footballing side, and Germany and most clubs still have this legal document drawn proposed from the hopefully enable the ability to exploit more structure. However, several clubs from the findings, which could function as a guide appropriate, diversified sources of funding, Bundesliga, and also some from the lower for members’ groups. Overall, such a instead of relying upon one-off donors as it leagues, have lobbied for a structural catalogue would help sharing experiences often appears. change in order to attract investors.

%8%#54)6%35--!29 'ERMANY Although there are several examples of already lined up, would be able to take term a more sufficient structure might help corporately structured football clubs and over German football clubs if the 50+1 rule to allocate responsibilities and for offering members’ associations who achieve their would be repealed. In this case, members advice and guidance to fan groups. The goals, notwithstanding the fact that only could lose their status and supporters requirement for a Supporters Direct Europe 49% of shares are available could deter trusts like those in the UK would become other than in an advisory capacity is therefore potential investors, there are other clubs more relevant and even crucial for helping questionable, but a European approach who face serious financial difficulties. As fans organise themselves to set up including Germany and in co-operation the discussion about structural changes members’ associations that aim for share with BAFF, Unsere Kurve and ProFans may in German football clubs is in full swing, ownership. Currently, football clubs are be potentially productive. All three groups it is crucial that fans decide which club still dependent on their members and in fully support the ownership structure of structure would allow them the most the event the 50+1 rule disappears, the members’ associations while the number optimal role in the running of their clubs. members’ associations would most likely of members’ associations in professional But who decides about the structural lose their shares in their professional football has been declining, and the 50+1 change? In general, it is the members football units. Hence, professional football rule has been under pressure. Currently, all meeting who decides about structural would be less dependent on members and three groups are campaigning collectively change and several statutes vaguely talk could lose an important basis for its links for the preservation of the 50+1 rule. about outsourcing that role, but only a few to the community. are more specific. Once the professional The structure of members associations is 4.5. Football Authorities football department has been outsourced, familiar to almost everyone in Germany and The DFL and DFB both show interest the influence of members regarding the gives members the opportunity to be actively in fan related issues and have been running of the limited company is reduced. involved in the decision making processes at comparatively supportive since the Members of the members’ association own their clubs. Supporters ‘own’ the club with Fan Congress in June 2007. Fan groups 50%+1 vote of the limited company and this model, if they are members. Obviously, and fan liaison officers now have direct one could speak here of fan ownership. members’ associations are run by their contact persons for their enquiries due However, there are only a few examples members, but we found that in many cases to the establishment of fan managers at where the influence of the members is so democracy and active involvement are low. the DFB and DFL. The fan manager in powerful that they would probably keep However, with an improved governance each authority is in regular formal and their power/shareholding in the event of a structure, members’ associations could informal contact with national and local structural change in the limited company. improve fan involvement and the financial fan groups. Furthermore, the authorities As the involvement of the fans in the stability of their football clubs. actively support the professionalisation running of their clubs varies between of fan liaison officers at the clubs. clubs, that is from limited company to 4.4. National Supporters Groups Both fan managers were supportive limited company, we cannot argue that the There are well respected and organised throughout this study and believe that 50+1 rule guarantees power of fans in their groups on the national level, of which BAFF well organised fans should have a say. clubs. The same can be said for members’ and Unsere Kurve and ProFans support the The advice provided by a Supporters associations, whose legal structure is structure of members associations and the Direct Europe could be beneficial for the often thought to automatically guarantee 50+1 rule and fan democracy in general. authorities in various ways. It has been high fan involvement in decision-making However, these groups do not prioritise shown that the main weakness of football processes at their club. It has been services regarding governance structures, clubs is their governance structure; some shown that the involvement of fans is which could be beneficial to fan groups at clubs make extensive use of their statutes determined by the clubs’ statutes, informal clubs, partly because they are involved on and define fan involvement while others relationships to the management and the a voluntary basis, which limits the groups’ do not. Hence, a Supporters Direct actual fan culture at the clubs. It has also capacities. However, this deficiency could Europe could assist in the restructuring been outlined that the actual democratic be overcome by providing adequate services of club statutes, which would not involvement of the members’ meeting with assistance and financial support from a only improve the level of democracy is limited. However, for the members of Supporters Direct Europe. In fact, we believe at the clubs, but also the financial members’ associations the legal structure that a Supporters Direct Europe could take an accountability and transparency. The guarantees an influence on the clubs’ advisory position and cooperate with BAFF, lower league clubs, many of which are board(s) if they exercise their rights. Unsere Kurve and ProFans, which could in financial difficulties, could especially Overall, the research shows that the be hugely beneficial for organised football benefit from improved governance 50+1 rule alone does not necessarily fans (not only) in Germany, as Supporters structures. It has been argued that define the influence of fans regarding the Direct has the relevant experience to help clubs who have incorporated their big decisions in their clubs. Nevertheless, move their respective agendas forward. professional football department still do it does provide a clear opportunity for fans/ Conversely, we believe that the experience not have to follow governance regulations members to influence the limited company of Unsere Kurve, BAFF and ProFans, and of typical corporations, which would lead to through the majority stake in their parent some well-organised supporters clubs could a governance vacuum. The establishment club. The potential for supporters to be also contribute to supporters’ movements in of governance structures, however, can be involved represents the actual power other countries. achieved through the design of statutes they have. Once the professional football Of the three national groups mentioned, and does not require a change of the legal department has been converted it is more Unsere Kurve has the agenda that overlaps structure of the clubs. difficult for members to influence the the most with Supporters Direct. Their non- However, good governance of football running of the limited company through the legal structure provides them with flexibility clubs is only one aspect of the overall 50%+1 vote of the members association. regarding decision-making processes and situation: fan groups, on the national and Outside investors, who are said to be reaction strategies; although in the long local level, sub-departments of the clubs or

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY independent supporters clubs, will all have structures would not only give them rights, their own behaviour and also the behaviour to improve their governance structures as but also obligations and responsibilities, of other fans. The DFB and DFL support well in order to increase their influence. which the authorities claim is desperately professional organised work with fans. The legal structure of fan groups, and the needed. The organisation of well- The establishment of fan liaison officers, corresponding governance structures, structured, responsible, democratic, anti- fan managers and regular meetings with varies among groups. It has already been racist and anti-violent fan groups could the fan groups is only the beginning, and shown that it would be advantageous also help to reduce violent incidents in efforts should continue towards improving for groups to take the legal structure of and around the stadiums. If supporters are the structural organisation of fan groups members’ associations, instead of loose more involved in the running of their clubs, and their involvement in decision-making interest groups or roundtables. Legal they should take more responsibility for processes at the clubs.

1 § 16 c statutes of the DFB: company has to adapt to. 2)Eine Kapitalgesellschaft kann nur eine Lizenz für die Lizenzligen und 10 All of them have to be listed in the respective commercial register at the damit die Mitgliedschaft im Ligaverband erwerben, wenn ein Verein lower court of the city where the companies registered office is. mehrheitlich an ihr beteiligt ist, der über eine eigene Fußballabteilung 11 Zusammenstellung der Geschaeftsuebersichten der Amsgerichte fuer verfügt und der im Zeitpunkt, in dem sie sich erstmals für eine Lizenz die Jahre 1995-2005, Bundesinnenministerium der Justiz. Referat R B 6, bewirbt, sportlich für die Teilnahme an einer Lizenzliga qualifiziert ist. 3004/2c – R4 119/2006. Der Verein („Mutterverein“) ist an der Gesellschaft mehrheitlich beteiligt 12 http://www.dfb.de/index.php?id=11015; after the reunification in 1990 („Tochtergesellschaft“), wenn er über 50% der Stimmenanteile zuzüglich the membership of the DFB increased, due to the affiliated regional mindestens eines weiteren Stimmenanteils in der Versammlung der associations and their respective members. Anteilseigner verfügt. 13 Bundesliga Magazin, October 2007, p. 14-19. 2 Bundesagentur für Arbeit,’Der Arbeits- und Ausbikldungsmarkt in 14 Deloitte, Annual Review of Football Finance, May 2008, p. 11. Deutschland’, www.arbeitsagentur.de, Juni 2007. 15 Deloitte 2008, p. 18. 3 Franks, J. and Mayer, C,‘Ownership and Control of German Corporations’, 16 Deloitte 2007, p. 19. Economic and Social Research Centre (ESRC) funded project on ‘Capital 17 § 16 Nr. 3 DFB statutes - Allgemeine Bestimmungen: Markets, Corporate Governance and the Market for Corporate Control’, Der Ligaverband ist der Zusammenschluss der lizenzierten Vereine und No. W102251103, 2000. Kapitalgesellschaften der Bundesliga und der 2. Bundesliga. 4 Most employee representatives are union-affiliated: In 2006, 6.585.774 Der Ligaverband regelt seinen eigenen Geschäftsbereich durch Satzung, Germans were organised in the Deutscher Gewerkschaftsbund (German Statut und Ordnungen sowie Entscheidungen seiner Organe unter Union Federation) alone, www.dgb.de. For the conditions required for the Beachtung derDFB-Satzung und der den DFB bindenden Statuten und appointment of the members of the supervisory board, see Du Plessis, Reglemente der FIFA und UEFA. J.J.,’The German Two-Tier Board and the German Corporate Governance 18 Satzung ‘Die Liga – Fussballverband e.V. (Ligaverband), Praeambel, http:// Code’, European Business Law Review, 15 (5), 2004, pp. 1139-1164, p. www.bundesliga.de/de/dfl/interna/index.php. 1149; ‘Comparative Study of Corporate Governance Codes Relevant to 19 Regionalliga: Regionalliga Nord, Regionalliga West, Regionalliga South (18 the European Union and its member states’, On behalf of the European clubs each). Commission, Internal Market Directorate General, January 2002; Franks, 20 For more information about the formation of the 3. Bundesliga, http:// J. and Mayer, C.,’Corporate Control: A comparison of Insider and Outsider www.dfb.de/index.php?id=11003 and the statutes of the 3. Bundesliga Systems’, Working Paper, London Business School, 1994; Schmidt, 2003, and Regionalliga, http://www.dfb.de/uploads/media/04b_Statut_3_Liga_ p 5; For the conditions required for the appointment of the members of the Regionalliga.pdf. supervisory board, see Du Plessis, 2004, p. 1149. 21 §§ 4 and 6 League Statutes. 5 For a historical review and the elements of the international context of 22 §16 League Statutes. German systems of corporate governance, see Cromme, G., ‘Corporate 23 Deutscher Bundestag – 16. Wahlperiode‚ Unterrichtung durch den Governance in Germany and the German Corporate Governance Code’, Bundestag,’11. Sportbericht des Bundestages’, 4 December 2006, pp. Corporate Governance, 13 (3), 2005, pp. 362-367. 1-124, pp.11-13. 6 Part 3 and 4 of the German Codex; see also, Cromme, 2005, p. 364 and 24 11. Sportbericht des Bundestages, 2006, p. 16; Deutscher Bundestag, Nietsch, M.,’Corporate Governance and Company Law Reform: a German Sportausschuss,’Situation der Sportvereine - Reformbedarf und Perspective, Corporate Governance, 13 (3), 2005, pp. 368-376, pp. 370. Handlungsoptionen’, Sitzungsprotokoll, Berlin, 28 February.2007. The code exists in addition to standards of control and shareholder rights. 25 11. Sportbericht des Bundestages, p.17. Critical, see Grass, D., ‘Governance-Kodex verpufft am Aktienmarkt’, 26 Chaker, A.-N.,’Good Governance in Sport, A European Survey’, Council of Financial Times Deutschland (FTD), 14 July 2005. Europe Publishing, 2004, pp. 1-101, p.64. 7 On Ownership and Control in Europe: One share-one vote, see International 27 Chaker, 2004, p.64; 11. Sportbericht des Bundestages, p. 20. Corporate Governance Network (ICGN) News, Issue 7, July 2007. 28 Schiffer, J.,‘Fussball als Kulturgut’, Bundesinstitut fuer Sportwissenschaft, 8 Overall the capital market is bound to the EU Transparency Directive Teil II, 07/2006; Breuer, C.,‘Sportentwicklungsbericht 2005/2006 (2004/109/EC), Directive 2004/109/EC of the European Parliament and - Analyse zur Situation der Sportvereine in Deutschland’, Bundesinstitut the Council of 15 December 2004 on the harmonisation of transparency fuer Sportwissenschaft, February 2007; Meier, H. E.,‘Die politische requirements in relation to information about issuers whose securities are Regulierung des Profifussballs, Bundesinstitut fuer Sportwissenschaft, admitted to trading on a regulated market and amending Directive 2001/34/ January 2005. EC, Official Journal of the European Union, 31.12.2004, L390, pp. 38-57. 29 Chaker, 2004, p.65. 9 Du Plessis, 2004, p. 1134; see also, www.corporate-governance-code. 30 http://www.bundesliga.de/de/liga/news/2007/index.php?f=79165. de; section 161 AktG; It could be argued that a Code formalized through php; Diskussion zu Gewalt in Fussballstadien. Parlamentsfernsehen, legislation would be more effective. However, Cromme, Du Plessis and 07.03.2007, http://www.bundestag.de/aktuell/archiv/2007/streit_krawalle/ Nietsch argue that especially the voluntary and therefore flexible character index.html. of the Code pay tribute to the constantly changing environment the 31 http://ec.europa.eu/sport/action_sports/nice/nice_en.html#Council.

%8%#54)6%35--!29 'ERMANY

32 http://www.eu2007.bmi.bund.de/nn_1034382/EU2007/EN/ mindestens eines weiteren Stimmenanteils in der Versammlung der DomesticPolicyGoals/Topics/SportPolicy/SportPolicy__node.html__ Anteilseigner verfügt. nnn=true. 54 According to §8 statutes of the League only one body, either the company 33 For the analysis of ownership and governance structures of German or the association, can hold the license. football clubs and the most adequate legal structures for supporters’ 55 The fear of takeover is legitimated as the Glazer takeover of Manchester groups, we have made extensive use of the Swiss Institute of Comparative United shows. From being the richest club in the World, Manchester Law, ‘Comparative Study of the Legal Structures of Football Clubs and United’s current level of debts is referring to the financial back up of the Supporters’ Organisations in 45 Jurisdictions’, 2008, pp. 1-367. takeover. 34 Examples: VFL Bochum, Hamburger SV, FC Schalke 04, VFB Stuttgart 56 §8 statutes of the League Federation (Ligaverband): 1893, 1. FC Nuernberg, Karlsruher SC, Hansa Rostock, Kaiserslautern, SC 11) Über Ausnahmen vom Erfordernis einer mehrheitlichen Beteiligung Freiburg, Carl Zeiss Jena, Kickers Offenbach. des Muttervereins nur in Fällen, in denen ein Wirtschaftsunternehmen seit 35 http://www.dfb.de/uploads/media/04b_Statut_3_Liga_Regionalliga.pdf. mehr als 20 Jahren vor dem 1.1.1999 den Fußballsport des Muttervereins 36 Examples: FC Bayern Muenchen AG, Eintracht Frankfurt AG. ununterbrochen und erheblich gefördert hat, entscheidet der Vorstand 37 Swiss Institute of Comparative Law, ‘Comparative Study of the Legal des Ligaverbandes. Structures of Football Clubs and Supporters’ Organisations in 45 12) Dies setzt voraus, dass das Wirtschaftsunternehmen in Zukunft Jurisdictions’, 2008, pp. 1-367, p. 264. den Amateurfuß- ballsport in bisherigem Ausmaß weiter fördert 38 Examples: Bayer Leverkusen Fussball GmbH, Alemania Aachen GmbH, sowie die Anteile an der Kapitalgesellschaft nicht weiterveräußert VFL Wolfsburg Fussball GmbH. bzw. nur an den Mutterverein kostenlos rückübereignet. Im Falle einer 39 Swiss Institute of Comparative Law, 2008, p. 279; BaySecur GmbH, Weiterveräußerung entgegen der satzungsrechtlichen Verbot bzw. der Bayer 04 Mobilien GmbH, Bayer Immobilien GmbH, Marketing GmbH, Weigerung zur kostenlosen Rückübereignung hat dies Lizenzentzug für BaySports-Travel GmbH, Bayer 04 Sportförderung GmbH. die Kapitalgesellschaft zur Folge. 40 Examples: DSC Arminia Bielefeld GmbH & Co. KGaA, SV Werder Bremen 57 Critical about 51%, e.g. Kupfer, T., ‘Erfolgreiches Fussballclub GmbH & Co. KGaA, Hertha BSC Berlin KG mbHaA, MSV Duisburg GmbH Management, Analysen, Loesungen’, Goettingen: Verlag die Werkstadt, & Co. KGaA, 1. FC Koeln GmbH & Co. KGaA, 1860 Muenchen GmbH & 2006; Dietl and Franck, 2007, p. 662. Co. KGaA, Borussia Dortmund GmbH & Co. KGaA, Hannover 96 GmbH 58 Sueddeutsche Zeitung, www.sueddeutsche.de, 25 June and 20 July & Co. KGaA. 2007; 11 Freunde, www.11Freunde.de, 25 June 2007; Soccer Investor, 4 41 Swiss Institute of Comparative Law, 2008, p. 280. March 2008. 42 Swiss Institute of Comparative Law, 2008, p. 280. 59 Dietl, H.M., Franck, E.,’Governance Failure and Financial Crisis in German 43 www.sueddeutsche.de 18 November 2006. Football’, Journal of Sports Economics, 30 July 2007, p.626-669 (665). 44 Dietl, H.M. and Frank, E., ‘Effizienzprobleme in Sportligen mit 60 Interview with the President of the Bundesliga, Dr Reinhard Rauball, Das gewinnmaximierenden Kapitalgesellschaften – Eine modelltheoretische Offizielle Bundesliga Magazin, September 2007, 18-23. Untersuchung’, Zeitschrift für Betriebswirtschaft, (70)10, 2000, pp. 61 Interview with Reinhard Rauball, 2007, 18-23. 1157-1175, p. 1158; Franck, E. and Müller, J.C.,’Kapitalgesellschaften im 62 http://www.fr-online.de/in_und_ausland/sport/aktuell/?em_cnt=129858 bezahlten Fußball’, Zeitschrift für Betriebswirtschaft, Ergänzungsheft 2, 5&sid=c45c31f19f8b01999856ab6d135053b8; http://www.ftd.de/sport/ 1998, pp. 121-141, p. 127. fussball/news/:DFL%20Ende%20Regel/326834.html. 45 § 43 II BGB; Segna, U.,’Bundesligavereine und Börse’, Zeitschrift für 63 Sueddeutsche Zeitung, 10 September 2007; 11 Freunde, 17 September 2007. Wirtschaftsrecht, (18)44, 1977, pp. 1901-1912; Wagner, G.,’Bundesliga 64 Interview with Christian Mueller, 11 Freunde, 19 September 2007. Going Public: Traumpaß oder Eigentor?’, NZG 11/1999, pp. 469-478. 65 “50+1 – Regel soll beibehalten werden”, http://www.bundesliga.de/de/ 46 www.sueddeutsche.de 18 November 2006. news.php, Frankfurt, 16 October 2008. 47 Dietl and Franck, 2000, p. 1158. 66 Holt, M., Michie, J. and Oughton, ‘Corporate Governance and the Football 48 Dietl, H.M.and Franck, E.,’Governance Failure and Financial Crisis in German Industry’, in Trenberth, L., Managing the Business of Sport, 2003, p. 124. Football’, Journal of Sports Economics, 30 July 2007, pp.626-669, p. 664. 67 Schmidt, R.H., ’Corporate Governance in Germany: An Economic 49 Morrow, S.,’ The People’s Game? Football Finance and Society, Perspective’, Working Paper Series: Finance & Accounting No.18, Johann London: Pargrave, 2003, pp. 131; Schewe, G.,’Der Fußball-Verein als Wolfgang Goethe Universität, Frankfurt, Finance Department 2003, pp. Kapitalgesellschaft: Eine kritische Analyse der Corporate Governance’, in 1-53, p.6. Schewe und Littkemann, 2002, pp. 163-176. 68 Schmidt, 2003, p. 6. 50 69 Michalik, C.,’Ehrenamtliches Engagement im Profifußball – ein § 5 LO – 0ERONELLEUND!DMINISTRATIVE+RITERIEN. Auslaufmodell?’, in Schewe, G. and Littkemann, J., Sportmanagement 70 ‘The governance framework should recognise that the interests of the – Der Profi-Fußball aus sportökonomischer Sicht, Schorndorf: Hofmann, corporation are served by recognising the interests of stakeholders and 2002, pp. 99-114, p. 100. their contribution to the long-term success of the corporation.’ OECD, 51 Dietl and Franck, 2007. Principles of Corporate Governance, Section III, OECD, Paris; ‘Supporters 52 The licencing regulations are laid out in §§ 2-7 Lizensierungsordnung are more than just customers. The degree of loyalty to the club, their (LO); Müller, J.C, ’Kostenkontrolle und Wettbewerbssicherung durch investment behaviour and their contribution to the revenue generated Lizensierungsverfahren – Dargestellt am Reglement für die Fußball- by the clubs makes them stakeholders’. Football Governance Research Bundesliga’, in: Büch, M.-P. Büch and Schellhaas, H.M., Ökonomik von Centre (FGRC), The State of the Game: the Corporate Governance of Sportligen, Schorndorf, 2005, pp. 53-75, p. 62. professional Football Clubs, 2003. 53 § 16 c statutes of the DFB: 71 v.Werder, A.,’Der Deutsche Corporate Governance Kodex – Grundlagen 2) Eine Kapitalgesellschaft kann nur eine Lizenz für die Lizenzligen und der Einzelbestimmungen’, DB 55, 2002, pp. 801. damit die Mitgliedschaft im Ligaverband erwerben, wenn ein Verein 72 Reviews on governance literature: Financial Reporting Council, The mehrheitlich an ihr beteiligt ist, der über eine eigene Fußballabteilung Combined Code of Corporate Governance, Financial Reporting Council, verfügt und der im Zeitpunkt, in dem sie sich erstmals für eine Lizenz London, 2003; Kay, J. and Silbertson, A., ’Corporate Governance’, bewirbt, sportlich für die Teilnahme an einer Lizenzliga qualifiziert ist. National Institute Economic Review, 95(3), 1995, pp. 84-96; Tricker, R.I., Der Verein („Mutterverein“) ist an der Gesellschaft mehrheitlich beteiligt ’Corporate Governance, History of Management Thought’, History of („Tochtergesellschaft“), wenn er über 50% der Stimmenanteile zuzüglich Management Thought, Aldershot: Ashcroft Publishing, 2000; Schmidt,

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY

2003, pp. 1-53; Franks, J. and Mayer, C., ‘Ownership and Control of 2004, pp. 8-34; Also, Roose and Schaefer questioned football fans about German Corporations’, ESRC funded project on Capital Markets, their desire for participating in their football clubs in an Internet survey, Corporate Governance and the Market for Corporate Control’, No. which was conducted in Germany in 2004-2006298. The aim of their study W102251103, 2000. was to discover what the factors are that turns a loyal fan into a participating 73 § 5 of the licensing regulations define personnel and administrative criteria fan. Participation in this context was defined in two different ways: in the for professional football clubs. The criteria include financial education and sense of loyal support, like organising a bus to the next away game, and in experience as well as accounting and media experts. taking part in the clubs’ decision-making processes. The study showed that 74 Sec. 22, 55, 56 BGB. fans were less interested in the governance of their football clubs. Most fans 75 Supporters News, Das Magazin des HSV Supporters Club, No 50 I, March questioned were supporting their clubs actively, although different scales 2007, p. 34-41. and intensities. On the other hand, half of those fans questioned wanted 76 § 8, Satzung und Ordnungen, Eintrach Frankfurt: http://www.eintracht- their clubs to follow more democratic principles and demanded more rights frankfurt.de/media/pdf/satzung.pdf. of co-determination for themselves. 77 Werder Magazin, Nr. 218, 3 March 2008, p. 47. 105 Bundesliga Magazin, October 2007, p. 14-19. 78 § 2 Zweck und Aufgabe des Vereins: (...) Die soziale Integration 106 http://www.kicker.de/news/fussball/bundesliga/startseite/artikel/368250. ausländischer Mitbürger soll gefördert werden, http://www.schalke04. 107 On 15 June 2005 for example, a demonstration took place in Frankfurt with de/satzung.html. 2000 football fans drawing attention on policing and repression; Another 79 Müller, 2005, p. 62. example is the “fans or Customer” initiative organized by “Rote Kurve – 96 80 Müller, 2005, p. 56. Supporters Clubs” at Hannover 96, where supporters refused to support 81 The bank secrecy needs to be changed in favour of the League their team for 45 minutes, http://www.fans-oder-kunden.de/ – to mention Association and the DFL needs to get access to information’s from the but a few. appropriate German Inland Revenue Office. 108 Critical, Kazperowski, A.’Ein Tanz auf Messers Schneide’, 11 Freunde.de, 82 Müller, 2005, p. 66; Press release of the DFL, 20.04.2005. 19 November 2007, http://www.11freunde.de/vereinsblogs/106337. 83 § 7 LO and VII LO; In addition to those documents a series of legally 109 www.fanprojekte.de. binding written declarations need to be handed in, including the 110 The different fan bodies will be outlined in more detail in the following commitment to give access to contracts about marketing and operations, sections. a declaration about the fulfilment of employment liabilities and the 111 http://www.eintracht.de/fans/fan-abc/. payment of salary taxes and social security premiums until 31.12, or an 112 http://www.fcstpauli.com/staticsite/staticsite.php?menuid=140&topmenu instituted submitted regime. =136&keepmenu=inactive. 84 Deloitte, Annual Report of Football Finance, 2005, p. 32. 113 http://www.fcb-fanrat.de/satzung.htm. 85 Ernst & Young, Bälle, Tore und Finanzen: Wege aus dem finanziellen 114 http://www.arge-tsv1860.de/start.htm. Abseits, 2004; Ernst & Young, Bälle, Tore und Finanzen II: Aktuelle 115 http://www.gruenwalder-stadion.de/?id=46. Herausforderungen und Perspektiven im Profifußball, 2005. 116 The background of Ultra groups, their birth and identity has been 86 Interview with Christian Mueller, CEO DFL, in Das offizielle Bundesliga described in the Italian report of this study and has been extensively Magazin, January 2008, p. 38-39 analysed by other: Gabriel, M.’Ultra-Bewegung in Deutschland: Von 87 Dietl and Franck, 2007, p.666. Doppelhaltern und Choreografien – die Antwort der Kurve auf den 88 Dietl and Franck, 2007, p.667. Fussball als Event’, in: Buendnis Aktiver Fussballfans, Ballbesitz ist 89 Peitsmeier, H.,’Bundesliga-Bilanzen – Dem Fußballfan bleibt die wahre Diebstahl: Fans zwischen Kultur und Kommerz, 2004, pp. 179-194; Finanzlage verborgen’, 19. December 2003, FAZ.Net, www.faz.net. Pilz G., Bahn, S., Klose, A., Schwenzer, V., Werner, S. and Woelki, F., 90 Dietl and Franck, 2007, p.667. Wandlung des Zuschauerverhaltens im Profifussball, Bundesinstitut fuer 91 http://www.dfb.de/uploads/media/04b_Statut_3_Liga_Regionalliga.pdf. Sportwissenschaft, 2006. 92 http://www.dfb.de/index.php?id=500014&no_cache=1&tx_dfbnews_pi1[s 117 Interview with Theo Zwanziger, Koester, P. and Juergens, T.,’Im DFB howUid]=14876&cHash=a4730db34b. gibt es genauso viel Schatten wie Licht, 11 Freunde Magazin fuer 93 Deloitte, Annual Review of Football Finance, May 2008, p. 11. Fussballkultur, April 2008, pp. 48-53. 94 Bayern Munich, Schalke 04, Boruussia Dortmund, Hamburg SV, Werder 118 http://www.pro1530.de/. Bremen, Forbes, Soccer Team Valuations, 30 April 2008, http://www.forbes. 119 E.g. Dynamo 5000, initiative to increase membership for the club, SG com/lists/2008/34/biz_soccer08_Soccer-Team-Valuations_Rank.html. Dynamo Dresden; Buendnis der Bewahrer, FC Sachsen Leipzig. 95 Deloitte 2008, p. 14. 120 http://www.traditionsretter.de/index.php?option=com_content&task=vie 96 The new TV deal for 2009-2015 has been signed over €500 million. w&id=12&Itemid=13. 97 Deloitte, May 2007, p. 19. 121 With fan scene we mean the wider fan environment, active as well as more 98 Deloitte, May 2008, p. 15. passive supporters of the club. 99 Frick, B. and Prinz, J.,’Crisis? What Crisis? Football in Germany’, Journal 122 The full catalog of objectives can be found on www.die-fanbeauftragten. of Sports Economics, February 2006, pp. 60-75, p. 62. de and on www.dfb.de. 100 Soccer Investor, 5 September 2007. 123 Bundesliga, Handbuch für Fanbeauftragte (Version 3.0), 18.02.2008: 101 Schwarz, H., ‘Fussball-Klubs und Lizenzen – Leere Raenge, leere Kassen’, 4.1 Fachliche Voraussetzungen Sueddeutsche Zeitung, 7 November 2008, http://www.sueddeutsche. • Erfahrungen im positiven Anleiten von Menschen de/finanzen/artikel/860/141554/. • Erfahrungen und Kontakte zu entscheidenden Netzwerken in der Fan- 102 Deloitte 2008, p. 18; Bundesliga Magazin, Mai 2008, pp. 74-75. Szene (z.B. Fan-Clubs, Ultra- und Hooliganszene). 103 e.g. Sachsen Leipzig, KFC Uerdingen, Waldhof Mannheim, Dynamo • qualifizierter Berufsabschluss oder abgeschlossenes Hochschulstudium Dresden, Darmstadt 98; Apitius, B., Mucha, R. And Juergens, T.,’Eine • im Umgang mit Menschen erworbene Grundkenntnisse der Pädagogik, Liga macht sich huebsch’, 11 Freunde Magazin fuer Fussballkultur, Mai Psychologie und Soziologie, vor allem in Bezug auf gruppendynamische 2008, pp. 32-43. Prozesse 104 For a detailed analysis, see Dembowski, G.,’Spieler kommen, Trainer gehen • Politische Neutralität – Fans bleiben’, in: Buendnis Aktiver Fussballfans – BAFF, Ballbesitz ist • Grundkenntnisse der englischen Sprache (bei Europacupspielen) Diebstahl: Fans zwischen Kultur und Kommerz, Goettingen: Die Werkstadt, • fundierte Kenntnisse der EDV (Word, Excel, Power-Point, Internet etc.)

%8%#54)6%35--!29 'ERMANY

4.2 Persönliche Kompetenzen 140 http://www.pro1530.de/index.php; for a detailed analysis of Pro 15:30, • hohe Kommunikations-, Konflikt-, Team- und Kooperationsfähigkeit als see also Weinemann, T.,’Der Anwalt der Fans’, in: Buendnis Aktiver entscheidende Sozialkompetenzen Fussballfans, Ballbesitz ist Diebstahl: Fans zwischen Kultur und Kommerz, • Lernbereitschaft, Denken in Zusammenhängen und rhetorische 2004, pp. 82-88. Sicherheit als methodische Kompetenzen 141 For the complete catalogue, see http://www.pro1530.de/pressemitteilung/ • Engagement, Motivation, Zuverlässigkeit und Flexibilität als 250607pressefankongress.htm. Personenkompetenzen 142 Members of the AG Fabdialog: DFB, DFL, Koordinationsstelle Fanprojekte, • Kommunikationsfähigkeit, auch in Gruppen und in der Öffentlichkeit Dem Ball is’ egal wer ihn tritt, Bündnis Aktiver Fußball-Fans, IG Unsere Kurve, • dienstleistungsorientiertes Denken und Verhalten Pro Fans, Netzwerk Frauen im Fußball. Zudem nahmen Gerald von Gorrissen, • Verhandlungssicherheit und Durchsetzungsfähigkeit Fanbeauftragter des DFB, Thomas Schneider, Fanbeauftragter der DFL, Ralf • angemessene Lebenserfahrung und Erfahrung im Umgang mit Fans; Busch, Sprecher der Bundesarbeitsgemeinschaft der Fanprojekte, Ralph Kenntnisse und Kontakte in die Fanszene des Vereins Klenk, Sprecher der Fanbeauftragten and Prof. Gunter Pilz. • Zeitliche Flexibilität besonders am Wochenende, Belastbarkeit 143 http://www.dfb.de/index.php?id=503930; The Fanrechtefond was • Situationsangemessenes, gepflegtes Auftreten founded in 2006 to provide legal support for fans with stadium bans. The • beruhigendes, deeskalierendes, versachlichendes professionelles organisation is headed up by five fan representatives from five different Verhalten in Stress und Konfliktsituationen clubs and two solicitors oversee the funding and apportion donations. 5. Strukturelle Voraussetzungen des Vereins 144 http://www.unserekurve.de/cms/pages/posts/neue- Es ist Aufgabe des Vereins den Fanbeauftragten in jeder Hinsicht zu stadionverbotsrichtlinien-treten-am-31.-mE4rz-in-kraft41.php. unterstützen. Damit der Fanbeauftragte alle beschriebenen Aufgaben 145 Critical ProFans, http://profans.de/index.php?page=news&newsnr=121; erfolgreich bewältigen kann, sind gewisse strukturelle Voraussetzungen in this context, another major concern for football fans is the “Datei notwendig. Gewalttaeter Sport”, which is a database containing the personal 124 Wurbs, D. and Schneider, T., ‘Handbook on developing and establishing information of any fans who have previously been in trouble with the police supporters’ charters in Europe’, European Convention on Spectator for ‘football violence’. Once registered on the database, fans are subject Violence and Misbehaviour at Sports Events and in particular at Football to restrictions/rules which are described as unreasonable in many cases. Matches (T-RV), Council of Europe, 31 January 2008, p. 36. 146 http://www.fanrechtefonds.de/index.html. 125 E.g. Schalker Fanproject: www.schalker-fanprojekt.de; Fanladen St. Pauli: 147 Swiss Institute of Comparative Law, 2008, p. 282. http://www.fcstpauli.com/staticsite/staticsite.php?menuid=137&topmen 148 Swiss Institute of Comparative Law, 2008, p. 282. u=136&keepmenu=inactive; Fan-Projekt Dortmund e.V.: www.fanprojekt- 149 Swiss Institute of Comparative Law, 2008, p. 282. dortmund.de; 126 http://www.jugend-sport.de/stpauli-fanladen/crew.htm. 127 Luezenkirchen, H.-G.,’ “EDFF”, Wissenschaftliche Begleitung/ Documentation des Projects „Ein Dach fuer Fans“, im Auftrag der Friedrich Ebert Stiftung, p. 18., http://edff.net/de/index.php?p=wissbegleitung. 128 http://www.kos-fanprojekte.info/. 129 KOS, Fanprojekte 2007, Sachbericht zum Stand der sozialen Arbeit mit Fussballfans, http://www.kos-fanprojekte.info/pdf/KOS_fp-2007.pdf. 130 As this study observes the relationship between supporters groups and their clubs, a closer observation of the national supporters group of the national team is obsolete. 131 http://www.aktive-fans.de/index2.php; see also Dembowski, G.,’Ballbesitz ist Diebstahl: Stichworte zum Buendnis Aktiver Fussballfans’, Buendnis Aktiver Fussballfans – BAFF, Ballbesitz ist Diebstahl: Fans zwischen Kultur und Kommerz, 2004, pp. 124-133. 132 BAFF statutes: http://www.aktive-fans.de/01a9d793f0118b947.html. 133 http://www.aktive-fans.de/01a9d793eb0025619/502764947d0ebab0a/ 035c5f9aa50febd02.html. 134 Interview with Thomas Weinemann, Fanbeauftrater Borussia Moenchengladbach, Leipzig, June 2007; interview with Mathias Scheurer, Spokes Person – Unsere Kurve, Frankfurt, 3 October 2007. 135 Members are: Abteilung Fördernde Mitglieder / HSV Supporters Club (Hamburg), Arminia Supporters Club und Schwarz-Weiß-Blaues Dach (Bielefeld), BvB Fan- und Förderabteilung (Dortmund), Fan- und Förderabteilung Eintracht Frankfurt e. V. (Frankfurt), FPMG Supporters Club (Mönchengladbach), Faninitiative SVB e.V. (Leverkusen), Fan- Projekt 1. FC Köln 91 e. V. (Köln), Schalker Fan-Club Verband e.V. (Schalke/Gelsenkirchen), Supporters Mainz e.V. (Mainz), Rote Kurve – 96 Supporters Club (Hannover), Interessengemeinschaft der Alemanniafans und Fan-Clubs (Aachen). 136 Interview with Mathias Scheurer, Spokes Person of Unsere Kurve, Unsere Kurve Bundestrefen, Frankfurt, 3 October 2007. 137 http://www.uefa.com/uefa/keytopics/kind=2048/newsid=632635.html. 138 http://www.tatort-stadion.de/. 139 For a detailed outline about the Ultra movement in Germany, see Gabriel 2004; Pilz et al 2006.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 'ERMANY

References

Apitius, B., Mucha, R. And Juergens, T.,’Eine Liga macht sich European Commission, ‘Comparative Study of Corporate huebsch’, in: &REUNDE-AGAZINFUER&USSBALL +ULTUR, Mai 2008, Governance Codes Relevant to the European Union and pp. 32-43. its member states’, INTERNAL-ARKET$IRECTORATE'ENERAL, January 2002. Breuer, C.,‘Sportentwicklungsbericht 2005/2006 – Analyse zur Situation der Sportvereine in Deutschland’, "UNDESINSTITUTFUER Ernst & Young, Bälle, Tore und Finanzen: Wege aus dem 3PORTWISSENSCHAFT, February 2007. finanziellen Abseits, 2004.

Bundesliga, Handbuch für Fanbeauftragte (Version 3.0), 18 Ernst & Young, Bälle, Tore und Finanzen II: Aktuelle February 2008. Herausforderungen und Perspektiven im Profifußball, 2005.

Bundesliga Magazin, September 2007, October 2007 and Mai Financial Reporting Council, The Combined Code of Corporate 2008. Governance, Financial Reporting Council, London, 2003.

Bundesliga Report 2008. Football Governance Research Centre (FGRC), The State of the Game: the Corporate Governance of professional Football Clubs Chaker, A.-N.,’Good Governance in Sport, A European Survey’, 2003, 2003. #OUNCILOF%UROPE0UBLISHING, 2004, pp. 1-101. Franck, E. and Müller, J.C.,’Kapitalgesellschaften im bezahlten Cromme, G., ‘Corporate Governance in Germany and the German Fußball’, :EITSCHRIFTFÓR"ETRIEBSWIRTSCHAFT, Ergänzungsheft 2, Corporate Governance Code’, #ORPORATE'OVERNANCE, 13 (3), 1998, pp. 121-141. 2005, pp. 362-367. Franks, J. and Mayer, C., ‘Ownership and Control of German Deloitte, Annual Review of Football Finance, May 2007. Corporations’, ESRC funded project on Capital Markets, Corporate Governance and the Market for Corporate Control’, Deloitte, Annual Report of Football Finance, May 2008. No. W102251103, 2000.

Dembowski, G.,’Spieler kommen, Trainer gehen – Fans bleiben’, Franks, J. and Mayer, C.,’Corporate Control: A comparison of in: Buendnis Aktiver Fussballfans – BAFF, Ballbesitz ist Diebstahl: Insider and Outsider Systems’, Working Paper, ,ONDON"USINESS Fans zwischen Kultur und Kommerz, Goettingen: Die Werkstadt, 3CHOOL, 1994. 2004, pp. 8-34. Frick, B. and Prinz, J.,’Crisis? What Crisis? Football in Germany’, Dembowski, G.,’Ballbesitz ist Diebstahl: Stichworte zum *OURNALOF3PORTS%CONOMICS, February 2006, pp. 60-75. Buendnis Aktiver Fussballfans’, in: Buendnis Aktiver Fussballfans – BAFF, Ballbesitz ist Diebstahl: Fans zwischen Kultur und Gabriel, M.’Ultra-Bewegung in Deutschland: Von Doppelhaltern Kommerz, Goettingen: Die Werkstadt, 2004, pp. 124-133. und Choreografien – die Antwort der Kurve auf den Fussball als Event’, in: Buendnis Aktiver Fussballfans – BAFF, Ballbesitz ist Deutscher Bundestag – 16. Wahlperiode‚ Unterrichtung durch Diebstahl: Fans zwischen Kultur und Kommerz, Goettingen: Die den Bundestag,’11. Sportbericht des Bundestages’, 4 December Werkstadt, 2004, pp. 179-194. 2006, pp. 1-124. Grass, D., ‘Governance-Kodex verpufft am Aktienmarkt’, Deutscher Bundestag, Sportausschuss,’Situation der &INANCIAL4IMES$EUTSCHLAND (FTD), 14 July 2005. Sportvereine – Reformbedarf und Handlungsoptionen’, 3ITZUNGSPROTOKOLL, Berlin, 28 February.2007. Holt, M., Michie, J. and Oughton, ‘Corporate Governance and the Football Industry’, in Trenberth, L., -ANAGINGTHE"USINESSOF Dietl, H.M.and Franck, E.,’Governance Failure and Financial 3PORT, New Zealand: Dunmore Press, 2003. Crisis in German Football’, *OURNALOF3PORTS%CONOMICS, 30 July 2007, pp.626-669. International Corporate Governance Network (ICGN) News, Issue 7, July 2007. Dietl, H.M. and Frank, E., ‘Effizienzprobleme in Sportligen mit gewinnmaximierenden Kapitalgesellschaften – Eine Kay, J. and Silbertson, A., ’Corporate Governance’, .ATIONAL modelltheoretische Untersuchung’, :EITSCHRIFTFÓR )NSTITUTE%CONOMIC2EVIEW, 95(3), 1995, pp. 84-96. "ETRIEBSWIRTSCHAFT, (70)10, 2000, pp. 1157-1175. Kazperowski, A.’Ein Tanz auf Messers Schneide’, 11 Du Plessis, J.J.,’The German Two-Tier Board and the German Freunde.de, 19 November 2007, http://www.11freunde.de/ Corporate Governance Code’, %UROPEAN"USINESS,AW2EVIEW, vereinsblogs/106337. 15 (5), 2004, pp. 1139-1164. KOS, Fanprojekte 2007,’Sachbericht zum Stand der sozialen 11 Freunde, Magazin fuer Fussball-Kultur, 25 June 2007, 17 and Arbeit mit Fussballfans’. 19 September 2007, http://www.11freunde.de/.

%8%#54)6%35--!29 'ERMANY Koester, P. and Juergens, T.,’Im DFB gibt es genauso viel Schiffer, J.,‘Fussball als Kulturgut’, "UNDESINSTITUTFUER Schatten wie Licht, &REUNDE-AGAZINFUER&USSBALLKULTUR, April 3PORTWISSENSCHAFT, Teil II, Koeln: Sportverlag Strauss, 07/2006. 2008, pp. 48-53. Schmidt, R.H., ’Corporate Governance in Germany: An Economic Kupfer, T., ‘Erfolgreiches Fussballclub Management, Analysen, Perspective’, 7ORKING0APER3ERIES&INANCE!CCOUNTING Loesungen’, Goettingen: Verlag die Werkstadt, 2006; Dietl and No.18, Johann Wolfgang Goethe Universität, Frankfurt, Finance Franck, 2007. Department 2003, pp. 1-53.

Luezenkirchen, H.-G.,’ “EDFF”, Wissenschaftliche Begleitung/ Schwarz, H., ‘Fussball-Klubs und Lizenzen – Leere Raenge, leere Documentation des Projects „Ein Dach fuer Fans“, im Kassen’, Sueddeutsche Zeitung, 7 November 2008, http://www. Auftrag der Friedrich Ebert Stiftung, http://edff.net/de/index. sueddeutsche.de/finanzen/artikel/860/141554/. php?p=wissbegleitung. Swiss Institute of Comparative Law, ‘Comparative Study Meier, H. E.,‘Die politische Regulierung des Profifussballs, of the Legal Structures of Football Clubs and Supporters’ "UNDESINSTITUTFUER3PORTWISSENSCHAFT, January 2005. Organisations in 45 Jurisdictions’, Volume I, Lausanne, 14 March 2008, pp. 1-367. Michalik, C.,’Ehrenamtliches Engagement im Profifußball – ein Auslaufmodell?’, in Schewe, G. and Littkemann, J., Supporters News, Das Magazin des HSV Supporters Club, No 50 3PORTMANAGEMENTp$ER0ROü &U¶BALLAUSSPORTÍKONOMISCHER I, March 2007. 3ICHT, Schorndorf: Hofmann, 2002, pp. 99-114. Tricker, R.I., ’Corporate Governance, History of Management Morrow, S., ‘The People’s Game? Football Finance and Society’, Thought’, History of Management Thought, Aldershot: Ashcroft London: Palgrave, 2003. Publishing, 2000; Schmidt, 2003, pp. 1-53.

Müller, J.C, ’Kostenkontrolle und Wettbewerbssicherung durch Wagner, G.,’Bundesliga Going Public: Traumpaß oder Eigentor?’, Lizensierungsverfahren – Dargestellt am Reglement für die .:', pp. 469-478. Fußball-Bundesliga’, in: Büch, M.-P. Büch and Schellhaas, H.M., ­KONOMIKVON3PORTLIGEN, Schorndorf, 2005, pp. 53-75. Weinemann, T.,’Der Anwalt der Fans’, in: Buendnis Aktiver Fussballfans – BAFF, Ballbesitz ist Diebstahl: Fans zwischen Nietsch, M.,’Corporate Governance and Company Law Reform: Kultur und Kommerz, Goettingen: Die Werkstadt, 2004, pp. 82- a German Perspective, #ORPORATE'OVERNANCE, 13 (3), 2005, pp. 88. 368-376. Werder Magazin, Nr. 218, 3 March 2008. OECD, Principles of Corporate Governance, Section III, OECD, Paris. v.Werder, A.,’Der Deutsche Corporate Governance Kodex – Grundlagen der Einzelbestimmungen’, DB 55, 2002. Peitsmeier, H.,’Bundesliga-Bilanzen – Dem Fußballfan bleibt die wahre Finanzlage verborgen’, FAZ.Net, www.faz.net;, 19. Wurbs, D. and Schneider, T., ‘Handbook on developing December, 2003. and establishing supporters’ charters in Europe’, European Convention on Spectator Violence and Misbehaviour at Sports Pilz G., Bahn, S., Klose, A., Schwenzer, V., Werner, S. and Events and in particular at Football Matches (T-RV), Council of Woelki, F., Wandlung des Zuschauerverhaltens im Profifussball, Europe, 31 January 2008. "UNDESINSTITUTFUER3PORTWISSENSCHAFT, Bonn: Hofman, 2006.

Roose, J. and Schäfer, M.S.,’Fans als partizipierendes Publikum?’, Freie Universität Berlin, Institut für Soziologie, 2006, http://www.ruhr-uni-bochum.de/fussball/ PartizipierendeFussballfans.pdf. de Ryter, K. and Wetzels, M.,’With a little help from my fans – Extending models of pro-social behaviour to explain supporters’ intentions to by soccer club shares’, Journal of Economic Psychology 21, 2000, pp. 387-409.

Segna, U.,’Bundesligavereine und Börse’, :EITSCHRIFTFÓR 7IRTSCHAFTSRECHT, (18)44, 1977, pp. 1901-1912.

Schewe, G.,’Der Fußball-Verein als Kapitalgesellschaft: Eine kritische Analyse der Corporate Governance’, in Schewe und Littkemann, 2002, pp. 163-176.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY

Summary 85

General Introduction to Economic, Political and Cultural Environment 86

1. Structure of Italian Football 87 1.1. The Government 88 1.2. Osservatorio Nazionale Manifestazioni Sportive – 88 National Observatory on Sporting Events 1.2.1. Regulations Affecting Football 88 1.3. Lega Calcio – Football League and Federazione Italiana Gioco Calcio (FIGC) – 89 Italian Football Association

2. Structure of Italian Football Clubs - Ownership and Governance 90 1.1. Ownership Structures 90 1.2. Governance Structures 91 1.3. Interlink between Ownership and Control – Implication for Management Behaviour 91 1.4. Financial Regulation – Licensing System 91 1.5. Financial Performance 92

3. Fan Culture 94 3.1. Supporters’ Clubs, Coordination Centres and Ultras 95 3.1.1. Supporters’ Clubs 95 3.1.2. Coordination Centres 96 3.1.3. Ultra Groups 96 3.2. Other Fan Initiatives 98 3.3. Progetto Ultrà 100 3.4 National Supporters Representation - Federazione Italiana Sostenitori Squadre 100 di Calcio (FISSC) – Italian Federation of Football Supporters Clubs

4. Suggestions 101 1.1. Image of Football Supporters 101 1.2. Adequate Legal Structures for Supporters’ Groups 102 1.3. Governance Guidelines via Statutes 102 1.4. Progetto Ultrà 102 1.5. Coordination Centres 103 1.6. FISSC 103 1.7. Ultras 103 4.8. Increasing Supporters’ Involvement in their Communities 103 4.9. Football Authorities and Regulations 104

Summary

 The Italian government has an regulations, which only follow a short- “presidente” and/or the family holding interventionist approach to football. With the term approach. The success of these company, which owns 100% of their new government, sport has gone back to its “DECRETI SPECIALI” is questionable, and shares. Only three clubs, Juventus, Roma previous statuts, regarded a less important they fail to have any long-term impact on and Lazio, are currently floated on the topic. Sport is governed by a Secretary the challenges that face Italian football. stock exchange, yet the control of each of Sport (3OTTOSEGRETARIO ALLO SPORT), The relationship between the fans and the of these clubs remains under a controlling who is ranked directly under the Prime governing bodies of football (Lega Calcio shareholder or group. All Serie A football Minister (0RESIDENZA DEL #ONSIGLIO). The and the FIGC) is almost non-existent, Clubs are organised as share companies National Observatory on Sporting Events and there is very little evidence that this (SpA). Football Clubs in the Serie B (/SSERVATORIO .AZIONALE -ANIFESTAZIONI situation will change anytime soon. are equally distributed between share 3PORTIVE) is responsible for ensuring security companies and limited liability companies. at sporting events and assesses the risk of  Italian football clubs are mostly family Considering the financial performance individual sporting events. owned and controlled. Many clubs are of Italian football clubs and the business Overall, the authorities try to tackle separate corporate entities and have behaviour of their dominant owners, the football violence by introducing emergency a holding company, controlled by the structure of professional football clubs, and

%8%#54)6%35--!29 )TALY the resulting governance structures, do to survive. However, the fan groups supporters. This would be achievable not generally provide a balance between did not see their shares as marketable through activity in the local area and sporting and financial objectives. assets, and any long-term approach or support on the national level. The re- involvement in running their club seemed establishment of FISSC provides the  In principle, fans are not involved in any alien to them. In general, fan groups potential for lobbying for the rights of fan decision-making processes at Italian simply do not have any strategies, nor do groups on a national level, and could help professional clubs. Little general or they follow any particular ownership and to increase their influence on the club formal contact worth mentioning exists governance models. level. Progetto Ultrà is a project lobbying between the clubs and their fan bases as Progetto Ultrà, together with a for recognition of fan culture as a social regards ownership and governance. The Supporters Direct Europe, should put an phenomenon and for adequate strategies main problem seems to be that Italian implementation plan into practice and that can improve the charged atmosphere fan culture has not been recognised as a establish adequate legal and governance within Italian football. The project has the social phenomenon yet, and is therefore models for supporters’ groups, which potential to lobby for Ultrà groups, and not targeted accordingly by the authorities would be tailored to the various cultural other football fans, which have changed or the clubs. Fans are kept in isolation and environments, to improve the general or want to change so they can be actively seem to be considered as an annoying perception of football fans in Italian involved in the community and in the by-product of football. The vacuum was society and increase their involvement in running of their clubs. filled by irrelevant and largely unworkable the community. Part of the implementation The most important role for a regulations such as the $ECRETO-ELANDRI plan should also focus on involving the Supporters Direct Europe at this !MATO, which on a practical level Federazione Italiana Sostenitori Squadre stage would be in empowerment and prevents fans and clubs having close di Calcio (FISSC), the federation of creating, maintaining and supporting associations with each other, which was coordination centres, which is the only responsible fan networks. What is critical originally meant to stop the trend of Ultras national supporters group in Italy, and the is that the existing groups do not remain effectively holding clubs to ransom. Ultras, as well as tackling the question of isolated, either in reality or perception. A Nevertheless, initiatives have existed how to incorporate the authorities. Supporters Direct Europe could advise where fans have raised enough money, What is required is grassroots groups on becoming democratically bought shares, and helped their club organisation, and the ‘humanising’ of organised and offer routes to influence.

General Introduction to Economic, Political and Cultural Environment Italy is a democratic republic and is home to about 58 million The political environment is equally unstable. The previous people. Its total and per capita output is similar to that of Prime Minister, Romano Prodi, and his centre-left coalition France and the UK. This output is spread unevenly between lost their parliamentary majority after one small party quit the the prosperous industrial north, which is dominated by private coalition over a corruption inquiry. These events caused Prodi companies, and the less developed primarily agricultural south, to lose a vote of confidence in the Senate in late January 2008, which has a 20% rate of unemployment1. and he consequently tendered his resignation after less than Italy has five semi-autonomous regions, each with their own two years in office. Although modest economic growth was respective legislation, and its entire identity is greatly defined by witnessed under his government, tax increases, poor crisis regionalism. Italy currently has the fourth largest population in management, arguments within the coalition, and frequent the EU (after Germany, France and the United Kingdom) and the calls for votes of no confidence took their toll on public fourth largest economy in Europe. However, based on its current support. Subsequently, Silvio Berlusconi’s centre-right 0OPOLO economic performance, Italy has been taken over by Spain as DELLA,IBERT÷ won the general elections in April 2008, and for wages growth and foreign investment are among the lowest in the first time his party held the majority in both houses. This is Europe, while public debt, pensions and administration costs the third time Silvio Berlusconi has been appointed as Italy’s are among the highest2. prime minister. Some believe that many levels of Italian society are The stock market witnessed extensive governance reforms influenced by organised crime and corruption, and studies between 1990 and 2005, with a corporate governance code have found organised crime to be an important sector for the and a new company law for improving the protection available economy3. The University of Cambridge recently conducted a to shareholders being introduced. Despite these reforms Italy poll that linked the current perception of crisis in the political still has fewer multinational corporations than other economies system with the nation’s mood, and it also revealed that Italians its size. The Italian economy is dominated by a large base of admit they are the least happy people in 15 Western European small and medium size companies, with a smaller number of countries4. An all-pervasive distrust of the government, and of large multi-national corporations relative to the economies almost every other institution, seems to disillusion and paralyse of other G8 countries. Accordingly, the country’s corporate Italian society, making a genuine belief in meaningful change governance system has developed differently to that in other almost impossible for Italy. The resulting psychological burden European countries. Bianchi and Bianco, in their study of ‘Italian is tangible, and Walter Veltroni (the former Mayor of Rome and corporate governance in the last 15 years, found changes head of the centre left coalition in the recent elections) has in the instruments used for ensuring stability and control in even said that among Italians “there is more fear than hope”5. listed and unlisted companies7. This study found an ‘increased Furthermore, 70% of Italians between 20 and 30 are still living at independence of boards’: home, and 21% of the 15-24 year olds were unemployed during 2006. Additionally, Italy’s birth rate is the lowest in Europe and • Guaranteed representation of minority shareholders on the hence its population is the oldest6. board of directors and on the board of statutory auditors, with

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY the board of statutory auditors gaining increased involvement. exchange (Act 23/3/1981), and the Società a responsabilità • Increased disclosure and procedural requirements regarding limitata (Srl), both of which are società di capitali. The SpA is the self share-dealing. most common legal form for companies of any size. Not only is the capital required to set up a SpA comparatively low, but The study also found increased power for shareholders: there are also complex governance regulations, which define • Easier to exercise voting rights. rights and responsibilities within a company, that have been • Greater disclosure8. established by statute. In comparison, the Srl is not bound by as many mandatory provisions and provides shareholders with So far there has been no sign of any ‘radical changes’ in greater freedom to design the company themselves, although the ownership and governance of listed companies, and such self-regulations may not be recognised by the courts. the separation of ownership and control remains limited. 3HAREHOLDERS!SSOCIATIONS: There is no specific legal regime Furthermore, the study revealed that most companies are that governs shareholder associations in Italy. Shareholder controlled by an individual – 61% of unlisted companies have a associations have recently been formed to help organise small majority shareholder, 40% are controlled by single individuals, investors in recently-privatised companies13. However, the and in 20% of companies the largest single shareholder has experience of small investors is not particularly encouraging, more than 66% of the shares9. Such concentrated control mainly due to two factors: first, the direct and indirect costs reduces liquidity in the market and limits the influence that non- imposed on small investors who may want to take part; secondly, controlling shareholders have on corporate decision-making. the procedures that must be followed by shareholder associations. Commentators expect no changes in the ownership and The Italian bourse unveiled a new governance code in 2006, governance structures of Italian companies. with the aim of increasing the importance of governance issues In Italy most companies are family owned. The Italian in listed companies. Commentators describe the new Italian Association of Family Businesses estimates that 93% of the corporate governance laws to having many similarities with businesses in Italy are family run; other estimates run as high as those in other European countries, such as Germany, France 99%10. Approximately 45% of the 150 largest public and private and Spain14. companies in Italy are family owned11. Bianchi and Bianco It seems, however, the main difference between the countries pointed out in 2006 that among family controlled companies: is the socio-cultural environment that Italian companies operate 41% are controlled by the founder, 23% by the first generation in. Many Italians believe in the existence of “DIETROLOGIA”, which and 15% by the second and later generations, with a reduction is the word for the process of trying to figure out what the “real in ownership concentration over progressive generations12. The truth” is. The underlying assumption is that the “real truth” is average age of first generation owners is 61. As the traditional always behind the story that is presented to the public. This concentrated ownership structure is present in most companies, wide-spread belief in “powerful forces” that manipulate reality most of them have a single managing director running the behind (or “DIETRO”) the scenes is reflected in a lack of trust for company. institutions in general, which results in an absence of desire for 3OCIET÷PER!ZIONI3P! and 3OCIET÷ARESPONSABILIT÷LIMITATA questioning authority due to a corresponding apathy. The belief 3RL : The two principal legal forms of limited companies are that “ordinary people” cannot influence events is one of the key the Società per Azioni (SpA), which can be traded on the stock problems we have faced during this study.

1. Structure of Italian Football shares. Only three clubs, Juventus, Roma Sports Minister Giovanna Melandri, who and Lazio, are currently floated on the sponsored a legislative decree mandating Football plays a pre-eminent role in stock exchange, yet the control of each collective negotiation of football television Italian culture, with 44 million Italians of these clubs remains under a controlling contracts, starting with those for the 2010/11 interested in football15. There are also shareholder or group. season (the delay being designed to allow three daily newspapers, read by about 5.8 The source of the biggest and most the current contracts time to expire). million people, which mainly report about important revenue stream for professional Italian football has been shaken by football16. football clubs in Italy, and one they are highly many scandals in the past, including Nevertheless, attendance figures in dependent on, is television. This accounts doping scandals and the major match fixing Italy are the lowest among the top five for about 63% of total revenue, compared scandals of the 70s and 80s, culminating in European leagues. In 2006/07, Serie A to 58% in the French Ligue 117. This has the Calciopoli scandal of 2006. In Serie A., experienced an average attendance of led to the general opinion that football is Juventus, Lazio, Fiorentina, AC Milan have around 19,000, which is half the size of not made for match-going fans, but for all been penalised for their involvement in Germany’s 38,600 average. As predicted TV broadcasting. Previously, every club Italy’s latest match-fixing scandal, even by Deloitte, such low figures have made negotiated their TV deals independently, though criminal proceedings have only Italy lose its status as the second highest which led to the big clubs generating far just begun. earning league in Europe over the 2006/07 more broadcasting revenue than the smaller Italian football has recently been in the season. clubs. This economic imbalance, and its media for the violent incidents involving Italian football clubs are mostly family related impact on the competitiveness of Italian football fans. Football in Italy has owned and controlled, and their ownership medium and smaller clubs, has become been associated with violent incidents and governance structures correspond an increasingly contentious issue in Italian for a long time, both at the ground and with the company structures described football over recent years. A number of outside the stadium, and the increasing in the previous section. Many clubs are clubs have insisted that a more equitable controlling measures set up since 1989 to separate corporate entities and have system of sharing broadcast revenue is face this issue did not seem to have a long a holding company, controlled by the fundamental to the long-term health of the term effect on the behaviour of football “presidente” and/or the family holding League. Their cause was taken up by the fans. The police did indeed develop a company, which owns 100% of their Prodi government, and particularly the more repressive attitude, and it is the %8%#54)6%35--!29 )TALY police, rather than opposing fan groups, or Czech governments, for example, the of the Ministry of Interior, and is set up who are now the main enemy of the fans. Italian government has an interventionist within the Department of Public Security21. This atmosphere worsened in 2007, due to approach to football, with politicians This government agency is responsible the incident at Catania. publicly identifying themselves with the for ensuring security at sporting events. Catania played Palermo on the 2nd game and certain clubs19. Until April 2008, Although founded in the 90s, the body’s February 2007. The authorities decided the Ministry of Sports was responsible for influence increased gradually and became that this match should be played at sport on the state level. However, since the very actively involved in fighting football 3pm, rather than 6pm, considering that election of Berlusconi in April 2008, Italy violence during 2007, following the death the fixture was a very delicate one. For does not have a Sports Minister anymore of Raciti. It is now the sole body in charge unknown reasons, the Palermo fans were rather sport is governed by the Minister of for decisions on this matter. not taken straight into the ground, but Youth Politics. Berlusconi stated that sport The Osservatorio assesses the risk of were made to wait until the drconf hslf by has to be independent from politics and individual sporting events, deciding if public the police who then escorted them into the should be run democratically by sports security is in danger and whether public ground. By that time the place was very authorities elected by sports people20. order provisions need to be issued. For crowded and the home fans remaining Football clubs were given a great deal example, it is responsible for banning away outside the stadium tried to confront their of latitude under Silvio Berlusconi, Italy’s fans, closing stands, and forcing matches rivals, albeit with no success. The police former and new Prime Minister, particularly to be played behind closed doors. started to fire tear gas outside and inside when it came to issues like debt relief and The Osservatorio consists of the ground, where the majority of fans had the negotiation of television contracts. The 15 representatives from different already taken their seats. This resulted in #ALCIOPOLI scandal and the recent violent organisations, which include the Secretary people running out of the ground and was incidents have since given the Prodi of Sports, the police, the Interior Minister followed by hours of complete mayhem. government and then Sports Minister, and the football authorities. As every Over this time police chief inspector Filippo Melandri, more opportunities to intervene, member has one vote it has proved Raciti was killed, even though nobody but they have often been ineffective, e.g. difficult for the previous Sports Minister knows how it happened. The teenager the restrictions on banners in grounds to push through her suggestions. The arrested a few days later has recently and fans travelling, and Melandri’s very body observes the sport and fan scene, been cleared of the charge due to a lack of public campaign for the equitable sharing organises activities to prevent violence, evidence. Once again Ultras’ violence was of television revenues, which achieved and proposes plans regarding security blamed, and even more repressive laws only marginally improved results once it issues surrounding football games22. were introduced. finally made its way through the complex However, the driving force behind the A later incident involved Gabriele process of approval by the League. organisation a perceived need to heighten Sandri, a Lazio supporter, who was killed Sports legislation exists at the national security rather than on attempt to address by a policeman at a motorway service and regional level (Art. 117), with national broader fan issues. station near the Tuscan city of Arezzo legislation overruling regional legislation. The introduction of specially trained in November 2007. The death triggered Regional governments mainly deal in stewards inside the stadiums is the widespread protests among the fans, sporting matters, based on the principle of observatory’s latest attempt to tackle and as a result Italy’s sports minister subsidiarity, and each regional government violence inside the stadium. Commencing suspended games in the country’s second has its own sports law, as declared in Law on the 1st March 2008, every matchday and third divisions for one week. 19 (1981). will have more than 10,000 stewards on Many legal steps have been taken There is a separate system of “sporting duty, which corresponds to one for every since then, including the introduction of justice” that combines some of the aspects 250 spectators based on average gates new laws and an increase in checks in and of the &EDERAZIONE )TALIANA 'IOCO #ALCIO in Italy. From now on the police will only around the stadiums. ‘Several stadia were (FIGC) (the Italian Football Association) be responsible for the security outside deemed unsuitable to host matches while disciplinary proceedings with quasi- stadiums, although the stewards can other clubs were not allowed to sell tickets criminal administrative law proceedings. report any illegal behaviour of tifosi inside to visiting fans’18. The police presence This element of the justice system was the stadium to the police23. has not helped to stop violent and racist front and centre in the #ALCIOPOLI scandal, The Osservatorio has come under behaviour in the stadia, leading fans and and can seem rather bizarre to Anglo- close scrutiny after the incidents on 18 others to suggest that a system should be American observers. It includes all of May 2008, the last day of the Serie A found where the police are less involved, the elements of an “inquisitorial” justice campaign on which both Roma and Inter or even less present, as they are now the system (with prosecuting magistrates, et could win the scudetto. The governing fans’ main targets. The current situation al) and overlaps with the actual criminal body closed the away end at Catania has been described as a new era, not just justice system. This had led to the fact that stopping Roma supporters to travel to by politicians, but by fans and authorities. Luciano Moggi et al, who were banned Sicily, and also stopped Inter fans to travel The study will examine if these fragile almost two years ago by the “sporting to Parma. However, Inter supporters times could result in more active and justice authorities” for their role in purchased matchday tickets regardless responsible behaviour from fans and other Calciopoli, have only just entered the very and travelled to Parma as it is only one stakeholders. early stages of actual criminal proceedings hour away from Milan. All in all around in Napoli. 5000 Inter supporters arrived in Parma, 1.1. The Government with or without tickets and the day ended The popularity of Italian football, and the 1.2. Osservatorio Nazionale sulle in riots with the police and damaged resulting power and influence it offers, has Manifestazioni Sportive – National property. As a result many Italians, not led to it operating within a highly political Observatory on Sporting Events just football supporters, have accused the environment. In contrast to the German The /SSERVATORIO is a sub-department Osservatorio of incompetence.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY 1.2.1. Regulations Affecting Football though this still does not seem to comply decree forbids any official or financial with the relevant accounting directives. relationship between football clubs and · Decreto Salva Calcio Furthermore, the UEFA license, which supporters’ groups31. Clubs should not guarantees international competition, is give contributions, support or any type of By December 2002, rapidly rising costs issued based on the financial statements help to fan associations, whether it is Ultra and ever declining revenues had hampered produced by the clubs. groups or other supporters groups. the financial performance of many Italian Furthermore, the decree prohibits all football clubs causing disastrous effects, · Spalma-Perdite choreographic elements such as flags with with many of them facing the very real a certain dimension, banners, megaphones threat of insolvency. To safeguard the clubs In 2005 the clubs lobbied for the SPALMA and drums. Fans have to receive approval from administration the government, led PERDITE (spreading out of losses) decree, from the authorities, by sending a fax to at that time by Silvio Berlusconi (also the which would have allowed the clubs to the police, before they can use banners principal owner and president of AC Milan), pay tax and social security liabilities over in the stadium. The decree also prohibits issued the DECRETOSALVA CALCIO, D.L. 28224. a longer time period. The decree was the direct sale of away zone tickets by the The decree allowed clubs to amortize the not implemented, as some politicians away club, limits ticket sales to four per asset of players’ registration rights over an feared that a relaxation of tax regulations person, and often one per person, and has arbitrary time period of ten years, rather for football clubs would not have been introduced preventive stadium bans that than over the length of players’ contracts. accepted by the wider Italian population. are extendable for up to five years. However, the carrying value was not written Nevertheless, one exception was made, by However, its existence seems to make off as an expense in the club’s profit and the then Prime Minister Silvio Berlusconi, no apparent difference to the relationship loss accounts, but was instead transferred to allow Lazio to pay off its €140 milion tax between the clubs and the Ultras and the to a new intangible asset, the salva-calcio liability over a period of 23 years30. impact that the decree has on reducing asset, which was then amortized over ten violent incidents is questionable. years25. In other words, the salva-calcio · Pisanu Decree Overall, the authorities try to tackle assets didn’t appear on the club’s financial football violence by introducing emergency statements, which caused the immediate The 0ISANU decree (n. 150 del 30/6/2005), regulations, which only follow a short- improvement of the clubs’ reported passed in 2005, is a set of anti-terrorism term approach. The success of these financial positions. In particular, the major laws. It includes a provision that allows the “DECRETISPECIALI” is questionable, and they football clubs, for which players’ contracts police to extend the permissible period of fail to have any long-term impact on the are the biggest item of expenditure, deprivation of liberty from 12 to 24 hours challenges that face Italian football. were able to submit accounts which for identification purposes. Furthermore, underestimated their true costs in a given under a reasoned decree adopted by an 1.3. Lega Calcio – Football League and year, thereby hiding real losses and giving investigating judge an accused person Federazione Italiana Giuoco Calcio a misleading picture to investors. ‘The could be held in detention for five days (FIGC) – Italian Football Association application of the decree in only four Serie before being allowed to contact an attorney. The Lega Calcio (football league) A clubs resulted in approximately €1billion Giuseppe Pisanu, the interior minister represents professional football clubs in being transferred from players’ registration in Berlusconi’s last government, ordered Serie A and B, and also runs the Coppa rights to the salva calcio asset’26. From this, that these laws be introduced to curb Italia (in which only clubs from the top the salva-calcio decree allowed several violence and improve safety within soccer two divisions participate) along with other clubs to avoid administration. stadiums. Starting from the 2005/06 minor tournaments. It may be considered season onwards, spectators should only important that the league negotiates k4HE ;%UROPEAN= #OMMISSION CONSIDERED be allowed to attend games in stadiums collective television contracts under the THATüNANCIALSTATEMENTSPRESENTEDINSUCH that comply with the decree, and clubs that influence of the FICG and the Secretary of A MANNER COULD NOT SHOW A TRUE AND FAIR fail to comply should be forced to play their Sports. The League has a certain degree VIEWOFTHECLUBlSASSETS LIABILITIES üNANCIAL matches behind closed doors. of regulatory freedom when it comes to the POSITION AND PROüT OR LOSS DEPARTING These rules, opposed by supporters, governance of football clubs. Nevertheless, FROM THE REQUIREMENTS LAID DOWN IN THE include video surveillance inside grounds, the League is not a legal entity, but part of TH %%# AND TH %%# automatic turnstiles, stewarding, and the FIGC and hence bound by its statutes. #OUNCIL$IRECTIVES!CCOUNTING$IRECTIVES crowd filtering areas outside the stadiums. The FIGC is the governing body of ON COMPANIESl ANNUAL AND CONSOLIDATED Fans have to submit an ID, as all tickets are Italian football and was founded in Rome ACCOUNTSl27 from this moment nominative, and away in 1898. Its constituent parts include Lega fan zone tickets cannot be sold on the day Calcio (see above), Lega Pro (formerly Hence, the Commission asked Italy to of the game. Additional sanctions were Serie C), Lega Calcio Dilettanti (Amateurs), change its accounting rules for professional also introduced for certain misbehaviours. Lega Calcio Divisione Femminile sports clubs28. In October 2005, as the new Notably, fan groups were not consulted (Women), Associazione Italiana Calciatori modifications were introduced, and the before the law came into effect. (Footballers’ Association), Associazione “Salva-Calcio” Decree was repealed by the Italiana Allenatori (Football Managers’ Legislative Decree n°115 of 30 June 2005, · Decreto Melandri Amato Association), and the Associazione Italiana confirmed by Law n°168 of 17 August 2005, Arbitri (Referees’ Association). As seen the Commission closed the case against This emergency decree became legally in other European countries, the FIGC Italy on accounting rules for professional effective within five days of the February regulates the game based on sporting, sports clubs (salva-calcio)29. Italian clubs 2007 Catania incident. Intended by financial and technical criteria. The FIGC are now allowed to write off the salva-calcio the government as a strong statement has laid out a set of rules that football asset over five years instead of ten, even of action to address the “crisis”, the companies must comply with to obtain their

%8%#54)6%35--!29 )TALY license and take part in competitions32. Juventus are, at present, the only three · Bologna F.C. The FIGC is a quasi-governmental clubs whose shares are listed on the Italian institution, as it was under the direct stock exchange. In June 2008 Bologna (SpA) reported a authority of the Italian Olympic Committee Italian football clubs have a long takeover by TAG Partners LLC and would (CONI) and, ultimately, the previous Ministry tradition of receiving paternalistic support have become the Seri A’s only foreign- of Sport. However, CONI acts as the from wealthy “barons”, who spend their owned club. The company wanted to federation of national sports associations personal funds on clubs and in return acquire 100 per cent of the club, valued for both Olympic and non-Olympic sports, acquire the very significant social status at €18 million and was said to invest at and hence coordinates their activities. This and political power associated with least €20 million in the club38. However, public ‘non-governmental’ body includes being the president of a local club. Silvio the takeover fell through and the club was the national sports confederation and Berlusconi, the Prime Minister, who owns bought by the Menarini family, the previous national Olympic committee, and is involved AC Milan is the best example of club minority shareholder. in setting national sports policies33. owners who are powerful figures in politics The rules governing the relationship or in business. Overall, Italian football is · Progetto Soccer between the FIGC and Lega Calcio are inseparably bound with politics. laid out in the.ORME/RGANIZZATIVE)NTERNE Owners are often seen as supporter- In October 2007 it was reported that &EDERALI (NOIF). Although the League is owners and their predominant aim is to Centro Sportivo Italiano (CSI), which to a large degree independent from the win the league. In this context, maximising is a Catholic sports organisation, had FIGC, there is significant overlap between utility means spending as much money purchased an 80% stake in AC Ancona the two; Antonio Matarrese, the current as possible on players so that the most (SpA), which was promoted to Italy’s president of the league, is the former games can be won. Thus, owners, minority second division in 2008. The Italian president of the FIGC. shareholders, supporters and other Sports Centre is a non-profit association, Where the relationship between the stakeholders all naturally follow the same founded on volunteerism, which clubs and the league is concerned, the goal – to win. promotes Christian education through league’s organisation is such that the “big” sport. The CSI is linked to the Vatican’s clubs are no longer dominant, at least on a Conference of Bishops, and although formal level. The days in which one single Ownership Structures in Serie A the Vatican approved the project, it has person could at once be the president of distanced itself from the move claiming 39 the league, the senior executive at AC Milan S.r.l. to have nothing to do with the project . and a senior consultant to the Berlusconi- The CSI together with AC Ancona signed owned television group are probably gone an agreement inspired by the “Projetto floated for good. S.p.A. Soccer”, a program developed by CSI The relationship between the fans to promote ethical values in sport40. The and the governing bodies of football is project was developed by the CSI as almost nonexistent, and there is very little a proposal addressed to professional evidence that this situation will change football in Italy, promoting management anytime soon. There is definitely less models and transparency, the adoption dialogue between the authorities and of a salary-cap with incentives linked to the supporters’ organisations than there compliance with specific standards of is in countries, such as England and behaviour, youth activities and generally Germany. However, the FIGC seems to the social dimension of sports. In addition seek to improve dialogue between itself of the application of an ethical code in S.p.A. and fan groups, and it also believes that the administration of the team, alongside Italian football could benefit from a central a model of economic management, the national organisation that would advise project also promotes sporting culture club-based supporters groups. among fans and social initiatives in the Third World. Ownership Structures in Serie B Recently the project has come under 2. Structures of Italian Football pressure, when the CSI complained that

Clubs – Ownership and S.r.l. the club had failed to live up to its side of Governance34 the bargain and fund Catholic charities in Italy and Africa, while the club replied the 2.1. Ownership Structures CSI failed to provide a promised million Football clubs ceased to be “sport & Euro in sponsorship41. leisure” companies in 1996 and started to become PLCs instead. Since then Italian 2.2. Governance Structures football clubs are organised as either The publicly listed clubs, Juventus, Lazio Società per Azioni (SpA) (Act 23/3/1981) and Roma, have to follow a different code or Società a responsabilità limitata (Srl)35. of corporate governance compared to the All Serie A football Clubs are organised as non-listed clubs42. Their code is similar to share companies (SpA)36. Football Clubs the one that companies in other European in Serie B are equally distributed between countries operate under. As listed entities, share companies and limited liability S.p.A. these football clubs have to publish companies37, although Lazio, Roma and audited annual and interim accounts,

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE?

)TALY and due to this there is greater disclosure AGREEMENTS AND ENCOURAGE ACTIVE CO other stakeholders disagree with the regarding financial accountability. For OPERATION BETWEEN CORPORATIONS AND objectives of the dominant owner. Overall, example, Juventus published a loss of STAKEHOLDERS IN CREATING WEALTH JOBS concentrated ownership and control €5.2 million in first quarter prior to the ANDTHESUSTAINABILITYOFüNANCIALLYSOUND structures fail to provide a supportive 30th September 2007, compared to ENTERPRISES environment for cooperation between their €11.8 million profit from the same stakeholders and the club, and the actual period in the previous year43. Of the three The legal framework of Italian football design of those structures lacks sufficient listed clubs only Juventus are listed on clubs does not dictate any strict separation transparency. the STAR segment of the Borsa Italiana, between decision-making rights and and therefore required to meet the higher control, as they are mostly owned by one 2.4. Financial Regulation – Licensing disclosure, transparency, governance and family or the family’s holding company. System public float requirements outlined below. Hence, the executive body/managing Like in all other UEFA members, Hence, Juventus is considered the most director of the club is generally the sole, or at Italian football clubs playing in UEFA transparent of the three listed clubs, with least majority, shareholder of the club. This competitions have to fulfil UEFA licensing useful information for their shareholders lack of separation between ownership and requirements that cover, INTERALIA, financial and other stakeholders provided on their control leads to restrictions in the exercise of and governance matters. So far there is no website44. Roma and Lazio are both on ownership rights by minority shareholders, domestic licensing system in place that the “Standard” segment of the exchange, and thereby limits their influence on defines and regulates financial and other which does not require its companies to management activity and strategy. requirements that need to be fulfilled to meet those standards. In contrast, in more diverse ownership play in the national leagues, although such All three listed clubs have only a structures like the members’ associations in a system has been considered for several minority of their shares being publicly Germany and Spain, where the management years now46. traded, and continue to be controlled boards act for the members of the clubs, the However, to take part in official by family groups or individuals who are demand for accountability and monitoring competitions the clubs must fulfil certain perceived as supporters of the club, is comparatively higher. However, we found conditions, which are not captured by and who prioritize sporting success that the actual design of more dispersed a licensing system such as the ones over financial performance. The value ownership models varies between clubs, existent in France and Germany. ‘In order of transparency is not significant for any and even in members’ associations the to be registered with the Companies’ club in Italy, and compliance with Italian demand for monitoring of the board and Register (2EGISTRO DELLE )MPRESE), any corporate governance rules is not even directors can be low. Regardless, members’ sport company must be “affiliated” with required from listed clubs. All clubs associations generally provide their or “licensed” by the relevant National have retained the “single tier” form of members with the opportunity to effectively Sport Federation (&EDERAZIONE 3PORTIVA corporate organisation, with a Board of use their ownership rights. .AZIONALE) which must in turn, be endorsed Directors (Consiglio d’Amminstrazione) Considering the financial performance by CONI. The “affiliation” constitutes, and Board of Statutory Auditors (Collegio of Italian football clubs and the business therefore, one of the conditions for the Sindicale), rather than adopting the behaviour of their dominant owners, the incorporation of a professional sport recently-introduced “two tier” model of a structure of professional football clubs, company. Management Board/Supervisory Board and the resulting governance structures, Furthermore, ‘to obtain the license as used in, e.g., the Netherlands, Germany do not generally provide a balance from the FIGC, the requesting company and Czech Republic. between sporting and financial objectives. must make a written request and produce Maximising resources means maximising the relevant memorandum of association 2.3. Interlink between Ownership and sporting success, and these sporting and by-laws, a list of the members of Control objectives and personal resources are not management, as well as a declaration The ownership structure of any type of embedded in good governance structures stating that the company owns an organisation could be expected to have that support sound financial management appropriate football field. The license an influence on the governance structure and accountability. It has been argued that must be renewed each year. Requesting and the actual design of the organisation. an interest in accountability and external companies must also provide a copy of In the following section, we will outline monitoring is further limited in cases where the shareholders register. To the extent how concentrated ownership and control minority shareholders and dominant that the capital is owned, wholly or partly, influence the governance structures owners share the same objectives45. directly or indirectly, by capital-based of football clubs, the exercise of rights Our research shows that cooperation companies, the FIGC may request the by minority shareholders and other between management and other transmission of documents necessary for stakeholders, and the game as a whole. minority shareholders is limited, as is the identification of the physical persons With regards to the influence that the supporter’s and other stakeholder’s who hold controlling shareholdings. The supporters and other stakeholders have capacity for influencing decision makers. sport companies whose shares are listed on the management activity and strategy The concentration of ownership and on the stock exchange, must further of their club, the OECD (Organisation for control can be considered to be more notify, within 48 hours of their having Economic Co-operation and Development) effective and efficient when it comes cognizance of it, any changes with respect Principles of Corporate Governance states to management activity and strategy, to a shareholding in excess of 2% of the the following: with consistent resources, maximising capital being acquired. All subsequent objectives and long-term commitment. variations must be notified within 30 days. 4HE CORPORATE GOVERNANCE FRAMEWORK However, its limitations become far To the extent that shares in excess of 10% SHOULDRECOGNISETHERIGHTSOFSTAKEHOLDERS more apparent in situations where the of the issued capital are held, directly ESTABLISHED BY LAW OR THROUGH MUTUAL minority shareholders, supporters and or indirectly, by any person, whether an

%8%#54)6%35--!29 )TALY individual or a legal entity, the FIGC may signings to re-enforce their squads – related impact on the competitiveness of request transmission of the documents 45% more than the €200 million from the medium and smaller clubs, has become identifying those persons. The same previous season50. Serie A revenues fell by an increasingly contentious issue in Italian person may not hold, directly or indirectly, €236m (17%) in 2006/07, with Juventus’s football over recent years: a number of controlling shareholdings in nultiple relegation by far the single largest reason clubs have insisted that the long-term companies belonging to the professional for the reduction51. After all, the combined health of the League is dependent on sector. An individual is deemed to be a losses of Serie A clubs over the last ten a more equitable system for sharing controlling shareholder when he or she, or years are a staggering €1.3 billion. broadcast revenue. Their cause was his or her relatives within the fourth degree, taken up by the Prodi government, and hold, directly or indirectly, the majority of · TV Revenue in particular Sports Minister Giovanna the votes of corporate bodies or a have a Melandri, who sponsored a legislative dominant influence by virtue of particularly The importance of television revenue to decree mandating collective negotiation of qualified shareholdings or particular Italian clubs cannot be underestimated. football television contracts, starting with contractual ties. Particular provisions In the 2006/07 season, 63% (€732 million) those for the 2010/11 season (the delay was regulate the merger, demerger, transfer of of Serie A clubs’ total revenues came from designed to allow time for the expiration of business, as well as the qualifications of broadcasting income, the highest rate any current contracts). the directors and managing officer’47. of broadcasting income and the single Although Melandri and the former In order to respond the consequences of most dominant revenue stream among government originally favoured a system the Bosman ruling, Act No. 586 of 1996 was the top five leagues in Europe52. Although that would have, on the whole, distributed passed, whereby the ban on distribution of cost controls have somewhat improved in the revenue equally, the political process profits to shareholders was abolished. the intervening period (Serie A’s wage to and the perceived need for the League to In order to renew their license, turnover ratio recently dropped below 60% support any new system led to extensive professional companies must further fulfil for the first time in ten years), the financial negotiations among the interested parties. the following conditions: a) they shall have performance of Serie A clubs continues The resulting decree, which was passed in made all payments of salaries to their to be highly volatile, with losses far more late 2007, was based partly on the current employees; b) they shall have fulfilled all common than profits. A key factor in this system used by the Premier League in tax, social insurance and pension duties; c) situation is the fact that club finances have England, and provided for the distribution they shall present a balance sheet certified been built on a single dominant revenue of the collectively-negotiated revenues by an audit company to the extent that pillar – TV income. Matchday attendance available to Serie A clubs according to three this is required by the existing legislation; in 2006/07 in Serie A continues to be the separate sets of criteria: 40% of the total d) they shall file the six-month accounting lowest amongst Europe’s top five leagues; available is to be distributed in equal shares report regularly certified by the company to the average crowd size of 19,200 (half the to all Serie A clubs, 30% of the total is to be the extent that it is required by the existing size of those in Germany) means that both split in accordance with a formula based legislation; e) they shall prove that they ticket and non-ticket related matchday on sporting results, and the remaining have sufficient financial resources for the revenues lag behind those in other 30% distributed on the basis of their whole season; f) in the event of loss-making countries53. Additionally, merchandising relative number of fans. Unsurprisingly, balance sheets or resolution of capital is also relatively underdeveloped when the modified system favoured the bigger increase, they shall present sufficient compared to countries such as England. clubs more than the original proposal. Not warranties by a bank institution.’48 Overall, the relative weakness of these only did the proportion of the total to be The FIGC reported in June 2008 that other revenue sources causes Italian divided reduce in correlation to club size Inter Milan, AC Milan and Sampdoria have clubs to be even more dependent on and league status, but the way in which been fined for false accounting. Inter and broadcasting income. the decree defined “sporting results” Milan were hit with €90,000 penalties for Since the late 1990s, the arrival of and “number of fans” institutionalised financial irregularities (including inflating well-funded pay television networks, who advantages for the most popular clubs. For transfer fees for the transfer of youth are eager to replicate the football-driven example, only one-sixth of the total amount players between the two clubs, thus success they have experienced in the distributed according to “sporting results” producing unjustified “profits”), between UK and elsewhere, has driven legislative will be dependent on the most recent Serie 2003 and 2005, while Sampdoria were changes (Decree No. 15) that provide A campaign: fully one half of that tranche of fined €36,000. Furthermore, seven of Italian clubs with rights for negotiating revenues will be determined on the basis of the the three clubs’ directors were also individual rights deals with broadcasters. a rolling average of results over a five-year fined. Genoa, Udinese and Reggina were Unsurprisingly, given the big club-centric period, with the remaining one-third being charged earlier with similar charges. The nature of Italian support, the largest determined on the basis of results over an FIGC said the player values were inflated clubs were able to extract the most even longer period going back to 194655. to enable two of the clubs to meet the favourable deals from the competitive The )L3OLE Ore financial newspaper ran financial stipulations needed to register for broadcasting market – the revenues a simulation based on the data available the 2004/05 and 2005/06 seasons49. earned by Inter, Juventus and Milan under in 2006/07 and this revealed that roughly their individually-negotiated television 30% of the total would be received by 2.5. Financial Performance contracts approached ten times that just the “Big Three”, with a further half of Serie A was reported to be the second available to the smallest Serie A clubs. The the total shared between them and the highest earning league in Europe during average difference between the “big” and three next-largest clubs (Roma, Napoli 2005/06, but as forecasted this has “small” clubs has been estimated to be 7 and Lazio). This distribution of revenue is changed in the 2007/08 season. Ahead to 1, which is the most unequal distribution notwithstanding provisions for providing of the 2007/08 season, Italy’s 20 Serie A seen in any major European league54. “solidarity” payments to newly-promoted teams spent a total of €368.4m on new This economic imbalance, and its clubs, and the earmarking of 10% from

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY total contract revenues for the rest of Italian clubs to roughly 4 to 1, it has no impact at loans by Credito Sportivo (the last public football (not only Serie B, but also the semi- all on the distribution of revenues before controlled bank in Italy) and €25 million paid professional and amateur ranks)56. the 2010/11 season. Furthermore, for to the municipalities for the relevant building The relatively small share of the total various reasons it may never even come permissions. Sportfive will manage the devoted to solidarity payments was a into effect: the League has only recently naming rights for the next 12 years. major source of friction between the Serie begun the interview process for hiring Among the other projects on the A clubs and their counterparts in Serie B. consultants who will advise it on the best drawing board, Udinese Calcio will This contributed to Serie B’s inability to way to conduct collective negotiations, transform the old Fruili stadium in a brand agree on contractual terms relating to the legal challenges to the principle of new environmentally friendly stadium for television coverage of live matches in the mandatory collective negotiation are around €130 million; Siena will co-own 2007/08 season. Such a state of affairs likely (and have already been threatened its new stadium with the municipality; further complicates the already precarious by one pay television network), and the Azzuri d’Italia in Bergamo and Rigamonti financial situation of relegated clubs, recent change of government in Italy has in Brescia will be shut down because of especially in a country where relegation significantly increased the chances of safety reasons and new stadiums are in the almost always results in significant drops in a new decree with different rules being pipeline; AS Rome and SS Lazio are also attendance, which is currently made worse passed before a single contract is ever aware of the economic impact new stadium by a near-complete loss of broadcast negotiated under the “Melandri system”. would have58. It is, however,difficult to revenue. Relations between the Serie B predict what effect the current global clubs and the League have continued · Stadium Management financial crisis will have on these plans to worsen over the course of the season, many of which are dependent on credit with some clubs claiming that the League Another factor that influences the financial and/or property development. threatens their very existence by refusing performance of Italian football clubs is the The president of Credito Sportivo to allow them the ability to negotiate fact that the municipalities own stadia, and will present its commercial plan “GRANDI individual contracts with local or niche it is they who decide on most aspects of OPERE DEL CALCIO” (big investment in broadcasters. In mid-April 2008, the Italian ground management and operation. The football) to the finance minister and vice- Antitrust Authority announced that it would clubs rent the ground, but are not normally secretary for sport matters, asking for examine the situation to see if the League’s involved in any major decision-making an additional act (“,EGGE 1UADRO”) on position amounted to an unlawful restraint processes. This situation creates two main private stadia business. The act would on trade. If regulatory action results from issues: a lack of responsibility from the be implemented in Italy’s “&INANZARIA” this enquiry it could have significant clubs regarding match day atmosphere, (Budget law), helping to reduce the impact consequences for the viability of the stadium safety and other related issues; of interests on investments, with a yearly system of collective rights set to apply to clubs are unable to generate revenue from budget of €20 million. Furthermore, with Serie A in 201057. the stadia as they do not own them. Their the collective deal on TV rights from the The big clubs agreement to the stadium income is restricted to match-day 2010/11 season on, a fund of 4% of the collective negotiations showed their ticket sales, which are comparatively low. new TV deal (between €35 million and €40 recognition of the then-current political AC Reggiana is the only club, which million) will be used for “ethical” purposes, reality, together with their hope that the currently owns their stadium (including namely grassroots (ca €15 million), mutual overall value of television rights would several shops, a hotel, cinemas and a solidarity (ca. € 15 million )and stadia (ca grow significantly and enable them to children’s centre). However, the plan is to €15 million to €20 million ca)59. Additionally, earn more per year under the new system, build arenas following the English model, the Credito Sportivo will make loans even though their percentage of the total commercially combining sports and available to football clubs. would shrink. Whether those projections entertainment, and in early 2008 a company All in all these factors would allow can actually be realised depends on a involved in the planning of those stadia clubs to finally use their stadia revenue- number of factors, which are very difficult held a conference, together with owners generating potential, diversifying to predict considering the broad spectrum of professional football clubs, to present and increasing their income streams, of television rights available in Italy: live this idea in more detail. They sell their if accompanied by sound ticketing matches, extended highlights and shorter concept as a flower: the stadium would be strategies, market research and fan highlights for each of the free to air, pay TV in the centre of an extensive 7-days-a-week targeting. Overall, the government is and “digital terrestrial” platforms, including entertainment programme surrounding it. about to include this project in its public other internet-based delivery systems. This In May 2008, it was announced that twenty infrastructure operation (“Grandi Opere”). all adds a further level of complexity to the professional football clubs seem to be ready current situation. to build their own venues, with Juventus and · Merchandising On the other hand, some fan advocates Siena to be the first ones, closely followed thought the new system might potentially Udinese, Sampdoria and Palermo. TV revenue is even more important reduce the relative dependence of Italian The new assets are seen as a boost considering merchandising is relatively clubs’ on television revenues. The desired for poor balance sheets of clubs in Serie A underdeveloped in the Italian league result of this scenario would be for clubs and B. Juventus for example is scheduled when compared to other European to improve the relationship with their replace its old Delle Alpi by 2011 with a leagues. Marketing opportunities through fans, thereby maximising ticket and other more modern 40,700 capacity arena, merchandising, even where the big clubs matchday revenues, as fan revenue would including 120 VIP boxes, shops, cinemas are concerned, have been picked up very become relatively more important. and other attractions, which will guarantee slowly. Additionally, the counterfeiting of Although the new decree is designed to additional income to the club. The project products is a very lucrative business in Italy reduce the relative difference in television is estimated to cost €130 million; €75 and the market is flooded with fake replica earning power between the big and small million invested by Sportfive, €30 million in shirts, which further narrows any business

%8%#54)6%35--!29 )TALY opportunities that may be open to the clubs increased – the revenue from match day overlook where the money comes from through merchandising. tickets simply does not play such an and whether, in fact, it exists’66. Overall, important part in their financials anymore. the acceptance of paternalism and · Lodo Petrucci Generally, Italian football clubs still do not factionalism, not to mention the apathy have any relationship with their fans, with inherent throughout most of the supporter Under the law “,ODO 0ETRUCCI”, once an TIFOSI still not considered by the clubs as base, are all elements of Italian society Italian club goes bankrupt the debts of assets, or even simply customers who that are evident beyond football. Although the club are extinguished and a new club, could bring revenue to the budget sheets. this pervasive attitude can be different which keeps the previous club’s trophies The violence problem in Italian football within Ultra groups, they tend to be less and honours, can be created just one is not exclusively found in Serie A and B, but and less critical of it. league below the previous one60. Hence, continues down through the lower leagues. In principal, fans are not involved in bankruptcy does not mean much more However, the reason for reduced attendance any decision-making processes at the than relegation; the owners or the fans do in these leagues isn’t because the situation club. The main problem seems to be that not really have to save their club as it will be has become so dangerous and frightening, fan culture has not yet been recognised as re-established anyway. but rather the developed perception held by a social phenomenon in Italy and is thus the general public that they should not take not targeted accordingly – neither by the their families to the stadium to follow their authorities or the clubs. As a result, fans 3. Fan Culture team. However, violence is only one reason are kept in isolation and are considered to why attendance is low; police action and the be an annoying by-product. Football has a very special social and antiquated conditions of the grounds also Nevertheless, there have been initiatives cultural status in Italy – 44 million Italians play their part. As football plays a big part where fans have raised enough money to are interested in the game, 31 million people in Italian life, all aspects of society are found buy shares to help their club to survive, support a team, 25 million people watch inside the stadium and diversity defines which will be outlined in the context of fan football on TV and 20 million read about fan culture in general. In this emotion- culture in the following section. However, football in the newspapers61. Nevertheless, loaded environment any social, political or the fan groups did not see their shares as Italy does not seem as advanced as its regional differences between the groups marketable assets, and in all cases bar one European counterparts where fan culture present often become simplified and far any long-term approach and involvement and fan organisation is concerned. Most more apparent, which provides a breeding seemed alien to them. fan groups are not aware that fans could be ground for hatred and the corresponding The media in Italy is extraordinary involved in the running of their clubs, that violent incidents. powerful – through the media channels, there are trust models out there, or that a One very unfortunate situation is the e.g. newspapers, television and radio, Supporters Direct Europe body exists to degree to which the “.OAL#ALCIO-ODERNO” supporters can reach large quantities of help fans voice their opinions. philosophy of the Ultra movement has been people, allowing them a substantial degree For supporters groups in Italy fan culture devalued by the violence that is associated of indirect power. The media interest also is Ultra culture. Italian football fans mostly with Ultras. No-one likes altering kick-off provides the ability to hold the owners of identify with the team and not the club62, times or being subject to heavy handed clubs accountable, in a country where which means they are not really interested security, but it is socially difficult for the transparency is a rare commodity. However, in ownership or governance issues as other fans in Italy to share any common one could question whether such public long as their club is substantially investing ground with the Ultras, who they tend to pressure results in genuine information about in its squad. Experience has taught view with a very jaundiced eye. There are the clubs or simply populist statements that Italian supporters to be highly sceptical many generalised concerns in Italy about allow the owners to highlight their status as – according to Vialli, ’it’s hard not to be the direction that the clubs are taking, TIFOSI on a regular basis. disillusioned given the stories coming out of not to mention where football is heading, Italian football, from owners who acquire a but there is little in terms of an organised 3.1. Supporters’ Clubs, Coordination club, bankrupt it, then move on to another, to response from supporters to put these Centres and Ultras referees who are constantly under scrutiny, concerns forward in a structured way. There are two different types of organised from arranged matches and ‘favours’ to According to Vialli, Italian football fans in Italian football: members of official accusations of doping and drug-taking. It fans are generally not interested in the or quasi-official supporter clubs, which seems at times that the Italian game is hell- financial performance of their clubs: ‘If often combine the name of the club with bent on self-destruction’63. somebody comes along waving money the name of the city or the associations Italian football clubs generally do not around, even if it is not his money, that’s they represent (e.g. Inter Club Venezia), seem to want to take responsibility for good enough for most. In Italy too many and the Ultras. Basically, it is the clubs their supporters, especially after the latest fans view a wealthy, free-spending club who dictate the terms for organised violent incidents. Italian football fans, as a kind of birthright. If the club does not participating fans: “Either you are with the “TIFOSI”, are famous for their passion, but spend, if it doesn’t generate some kind of club [in an official supporters club] and they are also known for anti-social and enthusiasm by bringing in players, they are get discounted tickets and other benefits, sometimes violent rituals. Clubs mainly not interested’65. or you are critical or against the club and take them for granted and consider them ‘Italian fans need hope to show up at you get nothing”67. In the next section we to be a ‘captive market’, with their average the stadium. If they don’t feel that a better will outline the following: the structure, attendance ranging between 40 to 60% of future lies ahead, they will not support objectives and concerns of supporters’ stadium capacity64. the team. And yet, because they want clubs; the coordination centres of Italian clubs seem to have lost interest to believe, they are eager to overlook supporters’ clubs; Ultra groups in Italian in their match-going fans as the flow of an owner’s track record if he puts the football; and we will provide an overview of money from broadcasting sources has money into the team. Just as they will fan representation on the national level.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY 3.1.1. Supporters’ Clubs subscription to the capital of the club in including by representing them in the Every football club has its own different order to rescue it from bankruptcy through shareholders’ meeting through proxies supporters’ clubs, depending on the a capital increase. No less than 5,000 given to it. Indeed, a significant number social background of the supporters. families of Lazio supporters adhered to of the association’s members also hold For example, different supporters’ the initiative. They managed to collect shares in Juventus SpA. The association clubs affiliated to Roma are “Roma Club €1.5 million and injected it in the capital of made the following statement in a press Palestrina (a little town near Rome), Roma Lazio. The association was then dissolved release on the 15 March 2007, just after the Club Monteverde (a zone of Rome), and due to its having attained its purpose. ,AZIO Juventus’ board of directors resolved to Roma Club Montecitorio (owned by )NVESTIMENTI was subsequently set up in the effect a capital increase of €104.8 million: members of the Parliament who support form of an Srl. Indeed, many supporters- “The association deeply regrets that, once Roma)68. The different supporters’ clubs shareholders of Lazio have contributed more, the shareholders-supporters are display their particular identifying banners their shares of Lazio SpA into ,AZIO invited to participate in the recapitalisation in the stadium. In the case of Roma, these )NVESTIMENTI thereby becoming members of the club, notwithstanding the fact that kinds of clubs are not recognised as official thereof. ,AZIO )NVESTIMENTI managed to the majority shareholder has proved unable fan clubs by the club, even if most of them hold as much as 1.9% of the capital in to protect the interests of the company as are represented by two big associations: Lazio. Directors of ,AZIO)NVESTIMENTI asked well as those of the minority shareholders the UTR (Unione Tifosi Romanisti), the Lazio management to represent the (…). IFIL, which holds 60 % of the stock, which was lauched in 2000 and the AIRC minority shareholders (PICCOLI AZIONISTI) promised to inject only €63 million (…); the (Associazione Italiana Roma Club), within the CONSIGLIO DIRETTIVO of Lazio. remaining €42 million has to be injected which has existed since the late 60s. The The Lazio management did not agree by the minority shareholders and, lacking associations are twin organisations but the to this. It appears that in 2004, Lazio’s for the time being a consortium for difference is that only Roma clubs can join majority shareholder managed to effect placement, there is no certainty that the the AIRC, while individual fans can also join an amendment of the by-laws whereby a recapitalization will be wholly subscribed. the UTR with no affiliation to a supporters’ corporate governance system was adopted, The association would like to stress that the club or any other association. the “dualistic model”, which diminished the minority shareholders, after the vexations Each of the “big three” football clubs, functions and powers of the shareholders’ suffered by them due to the inexplicable Inter, Juventus and Milan, has more than meetings. The idea was precisely to reduce conduct of the board of directors, run the 1,000 supporters’ clubs, whose members the influence of the minority shareholders, risks of becoming responsible, should they will either be drawn from a town or an including supporters-shareholders, and waive the right to subscribe the increase, organisation. For example, each of the the entities representing them, such as of the loss of a precious opportunity to major hospitals and universities in Milano ,AZIO )NVESTIMENTI. In spite of this, ,AZIO strengthen the club.”71 have both an Inter and Milan club, and the )NVESTIMENTI continued to represent the Italian Parliament has different clubs for supporters-shareholders (TIFOSI AZIONISTI) 3.1.2. Coordination Centres supporting each of the big three. The focus and protect their interests by participating Most clubs have an umbrella fan of each of the supporters’ clubs involves to all the shareholders’ meetings. ,AZIO organisation that coordinates the various obtaining tickets directly from the club )NVESTIMENTI was then renamed as ,AZIO supporters’ clubs across the country, (instead of having to buy them individually), &AMILY3RL. Interestingly, ,AZIO&AMILY, whose and some even have two or three such organising travel and merchandise, purpose is to serve as “a catalysator of all coordination centres. These coordination and providing out of town supporters Lazio supporters as well as to strengthen bodies are officially recognised by the with a meeting point/forum (often a bar and enhance the culture of “LAZIALIT÷”, clubs and are not as tied by the Melandri- or restaurant) in which to discuss their has an increasing number of partners in Amato decree, which forbids the clubs “SQUADRADELCUORE”. However, they almost important commercial sectors such as any contact with supporters’ groups that never take positions on “political” issues hotels, restaurants, holidays resorts, travel have violent backgrounds. They are all not- such as kick-off times, ticket prices, etc. agencies, sport circles, fitness centres, for-profit organisations, although a few The most common legal form used by discos, stores, insurance brokers, wine do receive some financial support from supporters’ clubs is that of “unincorporated producers, leasing companies and the the club, which is officially banned by the associations”69. The incorporated or like. These companies are owned or run Melandri-Amato decree. The management registered association is not often resorted by Lazio supporters and, being partners of of tickets is also banned by the decree, to due to the governmental supervision ,AZIO&AMILY3RL, they have access to the list although the groups often do manage that arises as a result of registration. of the members and are able to send them tickets for away games. They often also Supporters’ clubs do have elected officers, advertising material for their products.’70 have their own merchandise and dedicated but democratic influence on other matters The history of Juventus’ supporters- pages in official matchday programmes. within the clubs is rare. shareholders is also worth recalling The actual level of independence from the The history of Laziofamily Srl, a here. The association !SSOCIAZIONE club can vary, e.g. Inter Inter’s supporters’ supporters’ club of SS Lazio, outlined by 'IULEMANIDALLAJUVE (“hands off Juventus”) club has an office at the ground, although the Swiss Law Institute, is worth mentioning was created in 2006, at the time when the their relationship to the club is still limited here as so far it is the only supporters’ club club was sanctioned due to the corruption and not comparable with their counterparts incorporated under the form of a limited of some members of its management, in Germany, where many fan groups and liability company. which resulted in its exclusion from the clubs meet formally and informally on a ‘When the Lazio football club was premier league. One of the purposes of regular basis. threatened with bankruptcy in 2004, an the association is to foster debate and The level of organisation within these association was set up, called ,AZIONISTA, criticism and, as a result, protect the groups varies: some of the coordination whose purpose was to contribute to keep interests of the supporters, particularly of groups have the legal form of an the club alive. ,AZIONISTA promoted the the supporters who are also shareholders, incorporated association, while others do

%8%#54)6%35--!29 )TALY not incorporate an official legal structure, detailed outline of groups we have spoken the infamy), helped to decrease violent even though they are run along the same to. We have singled out Ultra groups as part incidents.76 The agreement followed lines, only without paying taxes. of fan culture in Italy as sports legislation the murder of a Genoa supporter on 29 All coordination centres have statutes and police repression are said to be based January 1995 befora a match against Milan outlining their aims, rights and duties. on the behaviour of Ultra groups in and at Marassi. This was the first occasion However, even here the actual design of around stadia. The lack of communication where various Ultra groups rallied together the statutes can be very highly variable between fans and the club, and fans and to discuss common principles that they between groups. The well-organised the authorities, is mainly justified by a could all agree on. groups consist of a general meeting, generalised negative assessment of Ultras. Ultras are the most passionate of fans, the board of directors and a supervisory However, we believe that observing Ultra but they are not necessarily violent. Their board, with a main aim of organising and groups in more detail is crucial for attaining main objectives are supporting their team regulating predominantly football related a better understanding of fan culture in and improving the stadium’s atmosphere initiatives. They often also have their own Italy. However, Ultrà groups are extremely with their choreographies and banners, choreographies and songs. complex and diverse, with different while also raising questions about The annual general meeting is the most structures, identities, rules and agendas, ticketing, kick-off times, stadium bans and powerful body within coordination groups, which makes it difficult to explain the policing styles. Some groups oppose the as it is here that the board and auditors are various mentalities. Thus, in the following effects of globalisation, proposing plans elected and the annual budget is approved. section we only provide a brief historical suggesting how to bring football fans back Resolutions require a majority of 75 per cent background of the Ultras in Italy, as others into the stadia and how to stabilise the from a membership attendance of at least have done this more extensively73. financial situation in Italian football, all of 51 per cent. The president is proposed which has helped them to improve public by the board and finally appointed by · Background image71. However, even if groups who try the board of directors. The statutes also to improve the situation do exist, violent briefly define the scope of duties held by Generally being an Ultra is about the incidents among Ultra groups and between the secretary, treasurer and press officer “MENTALIT÷ 5LTR÷”, about an attitude, them and the police are undeniably part of of the coordination group. The financial towards one’s own life as a fan, ones role the present Ultra movement in Italy. revenue of the group comes from members’ as part of the club, the curva and as part of Due to violent incidents in and around fees, donations by third parties, and is also the group. ‘The “MENTALIT÷” dictates that the stadiums, and in accordance with new generated by sports events, recreational Ultra must be an active spectator, overtly regulations brought in during 2007, banners activities and cultural activities that are display identity, and confront authority now have to be pre-approved, and these organised by the group. Some groups even and other Ultras within the limits of an regulations are enforced differently in each publish financial information. honour code’74. The groups are generally city. Italian youth culture is involved in a The relationship between the loosely structured and have a natural very colorful “TIFO”, hence there is a strong coordination groups and the Ultras varies hierarchy. Leaders are usually “naturally” opposition to the new laws. Additionally, from club to club. Some coordination selected based on the criteria of respect, the regulations do not seem to serve the groups and Ultras communicate with each attendance and general support of the purpose of preventing violence, but instead other. However, the fan clubs officially group’s values and general philosophy. just isolate the “TIFO” in the Italian stadia. oppose violence in and around the stadia The groups are financed by individuals Furthermore, under the new regime access and thus are hostile to Ultra groups through membership fees or the sale of to the stadium is regulated, tickets for and do not communicate with them. merchandise. Ultras commonly have a bad games need to be purchased in advance Conversely, Ultra groups often oppose image in Italy, not just with the media, but and the fans have to provide identification. the close relationship that fan clubs and also throughout the wider society. their coordination centres have with the The Ultra movement, born in the 1960s, · Relationship to the clubs and general management of the clubs. It seems the fan was originally politically interwoven with the involvement clubs generally think of Ultras as violent protest movement of the later part of that groups that cannot be taken seriously, decade. In contrast to hooligan groups, The relationship between the Ultras and and Ultras think of fan clubs and their the Ultras aimed for more than rivalry and the clubs is shaped by both parties. On associations as groups who are bought by violence. Nevertheless, the tension and one hand, Ultras generally do not have the clubs, which as a result makes them the number of incidents between the Ultra any formal relationship with their clubs, generally uncritical of any decisions made groups increased over time. Organised and this is a major part of their philosophy by the club. trips to the games have become a major and identity. They morally own the team concern for the authorities in particular, and consciously decide to be independent 3.1.3. Ultra Groups leading to repressive measures by the from the clubs. On the other hand, there Almost all Italian football clubs have Ultras. police, which have now become part of the are groups who have some form of Every CURVA has its own Ultra groups, cultural context. The Ultra scene split again relationship with the clubs; in several cases each with its own territory72, which means in the 90s as a result of the increasingly both parties have been known to do deals tension and power struggles exist within right wing direction/orientation many with each other. clubs and not just among groups of rival groups were taking75. Traditional values Guschwan speaks of ‘an emerging clubs. We have been in contact with several were becoming less important and the restlessness in reaction to organised Ultra groups who are seeking to change overall situation between the groups was fan protests (…) that is threatening to the the situation at their clubs and who want to degenerating dramatically. However, in point of self-destruction’78. Ultra groups be involved in decision-making processes. February 1995 an agreement between want more recognition on a general Hence, we provide a brief overview of the Ultra groups, the “BASTALAMEBASTAINFAMI” country-wide basis, while conversely Italian Ultra movement, followed by a more document (cut out the knives, cut out being paralysed by the tense socio-

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY cultural environment or even by their (loss internal changes are not only cultural, but them to be more involved in the clubs of) identity. Their reputation is low and are also affected by age as most members and generally more proactive within their this has resulted in them being unable to of the core group are now in their 40s and communities. One group even suggested support their teams as freely and openly their attitudes have changed. However, that if the bottom-up approach at a local as they used to do – a major part of their even though the group is changing its level does not work they should promote identity, namely supporting their team, has philosophy, they still want to remain change on the national level. In any case, been curtailed by regulations. Finally, any completely independent from the club. they understand that these changes will violent behaviour further diminishes their take a while to bear fruit and they have bargaining power by further weakening · Community Projects and Initiatives incorporated a step-by-step approach their already poor reputation. allowing them to analyse what they are As mentioned before, philosophies vary The main aim of all Ultra groups is to support capable of doing and shape their objectives between Ultra groups. Some only want their team. However, the groups we have and strategies accordingly. to support their team, and do not want been in contact with have also developed The inclusion of Ultras in football to have any involvement with the clubs long-term initiatives and strategies for politics seemed to be rather difficult, as or the authorities. Others have changed actively changing the circumstances that they wish to be independent from the their philosophy insofar as they have links they are unhappy with. They understand authorities and they simply do not trust to authorities. Both camps are involved that gaining respect in the wider community anyone who makes money in football. with setting up various initiatives within is necessary for achieving their goals. They are against modern football, but their communities. Their general aim is to Hence, they want to overcome the due to their philosophy they only have strengthen bonds with the community, get stereotypical Ultra mentality of not wanting limited methods with which to change the more (especially young) people involved, to be involved, thereby tightening the bonds current situation. As the outline shows, and spread a positive message about between communities and clubs. some groups want to take responsibility to the Ultra movement and their philosophy One group is close to organising a prevent them from being forgotten or even in particular. The ones who oppose forum/meeting point as a platform for wiped out. They understand that they have any links to the club and the authorities discussions with institutions, such as the to change their philosophy and they need communicate only with the community, police and the council. The group will target to be more involved in decision-making including the council. The groups who are young people in particular, as they believe processes, not only in the clubs, but also more open liaise with the club, the council behaviour inside the stadium affects values in communities. However, while they want and schools. In the following section we will and behaviour outside the stadium. to take responsibility they also demand the summarise agendas from various Italian Another group conducted a survey clubs to do the same. Ultra groups we have spoken to. among fans, asking them if they would be willing to spend extra money to purchase 3.2. Other Fan Initiatives ·Time for change a roof for their usual stand. The response The controlling position that the owner(s) was positive, but the project failed. of Italian clubs have provides fans with In general, Ultras oppose any relationship One group set up a legal association, a very limited, or non-existent, influence with the management of the club or the their own statutes, and an elected board on any decisions that affect their club. football authorities79. However, in the of ten members to increase their influence Decisions are made top-down, and there context of the latest incidents, which led through a more professional structure/ is no consultation with fans at any stage of to even more repression, Ultras have not platform. Ultras as well as members of the the decision-making processes. been able to fulfil their main objective, fan club are members of the association. As previously mentioned, the which is supporting their team in their Another Ultra group has a TV show on acceptance of paternalism and traditional manner. We have heard that a local station where they discuss current factionalism, as well as apathy among being an Ultra is not what it used to be, and issues. Through this programme the group much of the supporter base, are all some believe that there is no way back to can send out messages about positive elements of Italian society that go well the old traditions. During the research we and negative aspects of the club, fan base beyond football. It is typical for Italians to found several groups who want to change, and wider community. The programme is demand that a patron, the state or the local or have already changed, their strict watched more by ordinary fans than Ultras council responds to a crisis, rather than philosophy, becoming more open and due to its serious content, which includes making any attempt to resolve the issues desiring involvement with the community critical analyses of Italian football and themselves. When clubs like Fiorentina, and even the clubs. its fan culture. Other initiatives include Como, Pisa and Venezia were found to school projects, annual festivals, and a be bankrupt, the fans demanded exactly · Mix of Ultras and other Fans museum organised in conjunction with the this type of intervention by the “powerful” community. respective bodies. At Brescia, the idea that One group transformed from a pure The groups studied here understand fans could take over the club disappeared Ultra group to a fan group with an Ultra that contemporary football is a commercial once a well-financed new owner appeared component. The non-Ultra part of the business, but they criticise the short- on the scene. Even though the Ultras at group is growing and hence activities are term, money-fixated approach, with the Brescia successfully opposed many of changing, which has had the subsequent correlating loss of values and principles. the prospective candidates, their aim of effect of attracting different types of However, the Ultras’ attitude and the police being involved was not achieved or even people to the group. Their activities and government action helped split the followed up. A similar situation to that in increasingly focus outside the CURVA and fan scene/culture in two and even turned Brescia occurred at Reggiana. However, instead are focussing on bonds with the the media against them. They currently there have been other initiatives, mostly community, although the core group is still feel that they stand to lose much more involving smaller clubs, where fans have active in the CURVA. The influences on these than they could gain, which is what drives raised enough money to buy shares80.

%8%#54)6%35--!29 )TALY · AS Bari a road map of their aims and strategies to 2008” and will start again from Serie D. “Lo help increase awareness and membership. Spezia siamo noi” tried for months to sell The San Nicola stadium in Bari is The group is also looking for partners to its majority share to some entrepreneurs, considered to be one of Italy’s “Cathedrals help raise funds and find volunteers. but every deal failed. To the best of our in the Desert”. It was built for the 1990 knowledge Spezia’s supporters have not World Cup and has a capacity of around · La Spezia yet made their reaction public. 58,000, although it has never been full for a football match and most of the time it is On 31st March 2008, 70 per cent of the · Pro Ebolitana almost entirely empty, with an average shares in La Spezia were bought, for crowd size that does not exceed 6,000. a symbolic price of €1, by a srl set up by In 2004, the family that owned Pro Ebolitana The Matarrese family has owned the club the club’s supporters, which made La of Eboli announced that they wanted to since 1978 and Antonio Matarrese, now Spezia the first Italian club to be owned sell the club. During this time the club was president of the Lega Calcio, has also by its supporters. Around 700 supporters playing in the Campionato Eccellenza (the served as president of the FIGC (1987 are involved in the “,O3PEZIASIAMONOI” highly regionalized sixth division of the – 1996), as well as being the Vice-president initiative, which is financially supported Italian pyramid). The Eboli council, who of both FIFA (1994 and 2002) and UEFA by 18 monthly instalments provided by the owned the club’s ground, approached local (1992-2002). They have been unable to local bank and the sale of different season businessmen to take over Pro Ebolitana, but escape Serie B over the past decade and tickets82. The mayor has shown some all attempts were unsuccessful. However, fans have become completely disillusioned, commitment to the project considering the fans, and in particular the members of often accusing the ownership group of not 3,000 supporters have signed a petition the Nucleo Sconvolto Ultras group, were sufficiently investing in the club. asking for his resignation if the club is not able to raise €7,800 for renewing the club’s After the last attempt to lure Bari away saved. However, the industrial association league license, and after that they started from the hands of the Matarreses failed, a has refused to join the project. running the club. Monaco based consortium of about eight By the end of March, supporters, The leader of the group, including others business men/Bari supporters launched a together with shareholders, and small involved in running the club, had a known proposal to set up a new public company, and medium sized local businesses, record of altercations with the law. However, which is called #OMPRIAMOL! (let’s buy had paid almost €600,000 for providing when in control they all changed their it)81, via their website. CompriamolA is players’ wages, and they paid another attitude for the collective good of the club. an initiative that has the twin aims of €900,000 at the end of April to avoid The board successfully transformed the club setting up an organisation of citizens and penalisation. A minority shareholder, with the implementation of two decisions: entrepreneurs, as a foil in a prospective Inter F.C., who owns 10 per cent of the their first official act was to revise the club’s negotiation process, while trying to buy shares in the club, paid €75,000 to cover statutes, followed by a ban on political shares in the club. The aim is to take over an old debt. Its shareholding is crucial, statements at the ground. Pro Ebolitana won the club, return it to its community, and to as it appears to provide a guarantee for not only promotion to the Serie D (effectively bring it back to Serie A (thus the capital potential shareholders. However, Inter F.C. the fifth division), but also a trophy for the “a” in the name). Although the project has confirmed its commitment to the club and club with the best supporters. Throughout been set up by a group of professionals it has since paid another €50,000. the season they were only fined €100 for belongs to anyone who joined. The group The new board of directors was set minor offences, which is a historical low and follows a proactive approach, promoting up on the 30th April 2008 and had six a rarity in any country. support for the clubs and the community, members: two businessmen, one leader of Despite claiming that promotion to rather than campaigning against the the supporters, two financial advisers, and the Serie C2 is the next target, life still current owners. CompriamolA collects a well-known trader. The new president remains a struggle. The club has no offices statements of interest in the project – 32% of the club is Roberto Quber, who some and the administrative support comes people interested have so far joined the years previous had helped save Parma FC. from individuals. However, for the people initiative. Additionally, they have run a poll Another €8 million was needed to cover in charge of running the club is just a on their website, which has so far gathered the club’s debts by June. Hence, the group temporary solution, rather than a long-term 1000 votes: 49% voted for a public was hoping to find a sponsor or, preferably, approach. They would relinquish control company, 45% voted for another owner, a new owner, with one possibility being to someone who has the means to get the and only 6% want the Matarreses to stay. the entrepreneur who has maintained club in Serie C. They currently speak of a moral 20 per cent of the club. In any case, the membership within the group, meaning supporters intended to retain a controlling · Roma that they do not charge membership share to help them avoid any potential fees, and so far there are no membership future mismanagement or financial crisis. On the 21 April 2006, KPMG Advisory and obligations. However, once the organisation Many people contributed to the project the legal firm Tonucci gave a presentation is established a minimum membership including some players and Francesco Totti, on their study of the European experience fee will be introduced and everyone who donated his shirt for an auction. Further of popular shareholding in football, with who subscribes will be asked to decide initiatives were lined up, but many supporters the possibility of introducing a similar whether they want to participate or not. remained sceptical about the initiative as a model in Italy to Roma fans. During CompriamolA promotes their initiative whole and they doubt its long-term survival, this time Roma was in serious financial by marketing the project via a network of despite the success it has gathered. difficulty and an initiative was started by interest: there is a blog on the website for Finally, in July 2008 the financial strain a loose group of fans to gain influence people to leave their comments and video took its toll after relegation from Serie B and via popular shareholding. Various sports messages, and a newsletter also goes out the club was forced to declare bankruptcy. officials, including, inter alia, a consultant regularly. Additionally, the group will publish La Spezia have reformed as “Spezia Calcio from KPMG, a lawyer, the President of the

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY Provincial Committee of Roma’s section of while the majority seemed happy about the (e.g. a takeover by some entrepreneurs), CONI, and representatives from Roma fan prospects. the latest of which, attended by over 2,000 groups, attended the meeting. people, occurred in 2005. As the number According to an article in )L2OMANISTA, · Bologna FC of fans potentially interested in this initiative the previous Mayor of Rome, Walter is not high enough, additional awareness Veltroni, said, “Popular shareholding Inspired by the ownership structures of is being raised through forums and other represents the future of football”. Mr Barcelona and Real Madrid, fans raised communication channels. This strategy aims Carraro, the President of the FIGC, money in 1986 to buy the financially to get in touch with old fan clubs, old players supported the statement shortly after. troubled club of Bologna, and they did still interested in Prato, journalists, and any The unanimous view of the participants this again ten years later in 1996. However, others who would be interested in forming a who took part in the meeting was that the the group did not manage to raise the new football club or providing support. route to popular shareholding was open, substantial amount required and they as long as both the fans and the current had to pay the money back to the fans, · Venezia United management supported it. They were while donating the interest earned to all convinced that the Sensi family, who a charity, and the club finally went into Venezia United was a project undertaken controls the club, had to actively support administration. Eventually, the mayor of in 2005 to examine alternative methods for the plan before this “great dream for Rome Bologna set up a financially sound group of running Venezia Calcio84. The operation and la Roma” could be realised. Arduino a cooperative and several private owners, was commissioned by the supporters Ciaralli, the President of the Association who then owned and ran the club for 18 group “Noi Ultras” and two notable of Roma fan clubs said, ”a club like Roma months when the cooperative left the club. supporters who cared about the future transformed into a public company would of the club. The aim was to offer the be the ideal way to maximise involvement · AC Parma club and the city a new business model of the fans in the affairs of the team and that involved local medium and small the club.(…) The crux of it however is the The collapse of Parmalat and the rest of the size businesses, local institutions, and stability of the club: without taking anything Tanzi business empire, that controlled the individual supporters. The business plan away from the Sensi family, who have club, sent this club into administration in identifies motives, aspirations and duties truly done so much for this team, a club the 2003/04 season. A group of fans took for each of these three groups, and it set up organised this way would avoid the kind of over and ran its everyday business, with a to-do list of primary objectives including dark periods which we have had over the the group setting up additional plans to get administration, marketing, and valuation of years. It is right that the fans should have local public institutions, private companies assets and shares85. Compared to other lasting prospects, a solid base which can and ordinary fans involved in purchasing initiatives in Italy, Venezia United promoted be improved over time.” shares and becoming owners of the club. a short-term plan to save the club and a He suggested an evaluation of the They even mapped out the governance long term strategy for strengthening its project’s feasibility and proposed a structure with everyone taking on different financial, sporting and social performance. “mixed system”, where shareholders duties in the management of the club. However, in 2005 the club went into would support the current directors However, once again the initiative died out. administration, and the project never through merchandising and assisting progressed from its planning phase. The promotional activities of various kinds. · AC Prato main reasons for the initiatives failure The representatives wanted the Sensi seem to be a lack of support from local family to be involved in the initiative and to Prato was reasonably successful playing institutions and the fact that it was only sell shares to the fans, although nobody in the Serie B between the years 1950 to commissioned by a small group, rather believed this would happen. Nevertheless, 1964, and during this time the club had than carried out by the clubs’ supporters. the initiative died when the team started attendance figures of up to 10,000. Prato However, it was the only formal business to play well, the value of some players became a company in 1978, managed by its plan studied in Italy where the supporters increased significantly and the club usual chairman, and for the first five years were somehow involved. qualified for the CL. everything was fine, but afterwards their Our research has shown that activism However, in February 2008 Roma’s ambitions were not matched by the results in Italy tends to be supported by short-term majority owners were once again reported from the games. The board was not popular plans, and this trait does not just occur in to be in financial difficulty, which arose among the fans and the lack of success on football, but in all areas of society. Often from the debts held by their company, the pitch had an extremely bad effect on initiatives start with a press conference, Italpetroli, in the region of €300 million. the attendance figures, with as few as 74 before even having an agenda in place. Newspapers reported that Italpetroli SpA people turning up for games. Prato fans are Therefore, attempts seem rather populist was considering selling its controlling still currently boycotting the home fixtures, rather than thought through properly, and stake to the U.S. billionaire investor as they refuse to give any money to people this pattern is supported by the general George Soros83. Italpetroli denied press they would like to see removed from the socio-cultural attitude of a deficiency in reports it had begun the process of selling club. Many important people within the club active involvement. its controlling stake, or that it had received have left over the years and Prato has been The analysis of the various initiatives an offer to buy the club. However, in a close to bankruptcy, almost being relegated from different fan groups in Roma, Parma, statement Italpetroli said that it had held to the amateur leagues, on more than one Brescia, Bologna and Eboli shows that talks with a representative of an unnamed occasion. the enthusiasm to help the club to survive potential investor, but a sale was not The current leadership has not deviated exists but dies out very quickly. The imminent. Some Roma fans have publicly from the status quo, despite the fans initiatives were set up when the clubs voiced their disapproval that the club may organising some protest rallies to campaign were bankrupt, and where the patrons, come under the ownership of a foreigner, for a more diverse ownership structure who could ensure the club’s survival,

%8%#54)6%35--!29 )TALY were missing. However, once the financial to football fan culture, and here they also new stadia that have adequate services situation of the club was secured the archive background information, other available to the fans. groups saw no need to continue pursuing research material, and material relating to Recently the group developed a plan to their initiatives. The initiatives outlined each of their projects. introduce the “#ARTADEL4IFOSO” (fan card) to here all followed a short-term approach, It has been difficult for Progetto Ultrà help create a community for fans. The card with any long-term strategy or involvement to develop relationships with the FIGC and is supposed to become a tool of action – apparently alien to the Italian football fans. the League in the past. Three years ago the “one voice for fans”. The project is seen as a group did have informal contacts who tried rehabilitation project, with an aim to restore 3.3. Progetto Ultrà to organise dialogue on fan related issues the image of Italian football fans. With this Progetto Ultrà was formed in 1995 as a between the fans and the authorities, but clubs can allow FISSC card-holders easier project of the association UISP (Unione the initiative died out for various reasons. In access, including the right of entering Italiana Sport Per tutti – Italian Sport for all the context of the recent violent incidents, the stadium just before kick-off without Association). Progetto Ultrà was based on Progetto Ultrà was in contact with the requiring nominative tickets, in contrast the philosophy of fan projects in Germany, Sports Ministry and other politicians with to the current common practice. In some promoting community work with fans, an aim to introduce the concept of fan cases cardholders could even be excluded but on local, national and international projects, and even supporters’ trusts, from stadium bans. Another common levels86. Based on this model, Progetto and this was positively recognised by the objective of the card is the utilisation of Ultrà tries to act as a mediator between Sports Minister. However, since then no the card-holders information for marketing the various relevant parties in football, progress has been made, and the Interior purposes. However, in the meantime FIGC aiming to preserve and strengthen existing Ministry and the police have taken most and Lega Calcio have picked up the idea fan culture. At a local level, the group decisions regarding fans and Ultras. and are planning to introduce their very is in contact with fan groups and local Progetto Ultrà attended UEFA’s Fan own fan card. FISSC is opposing this idea, authorities. When issues require resolution Congress in December 2007 and has been as they believe that such a card could only the parties concerned will either get in very helpful in raising awareness of the work if it were introduced independently contact with Progetto Ultrà, or Progetto trust movement, Supporters Direct UK, from the authorities by the fans themselves. Ultrà will take the first step and speak to and the feasibility study. It remains to be seen whether the card will the club and the authorities. Their main aim be introduced by the FIGC. is to promote positive behaviour among 3.4. National Supporters In contrast, the FIGC wants to improve football fans, while underlining the positive Representation – Federazione Italiana their relationship with the group and has aspects of fan culture, as fan culture in Sostenitori Squadre di Calcio (FISSC) offered to mediate between the various Italy has not been recognised as a social – Italian Federation of Football parties. Giovanna Melandri, the former phenomenon yet. Supporters’ Clubs sports minister, also regarded the group The Progetto Ultrà project “Values of FISSC is an umbrella organisation of very positively, but future relationships with Sport” organises meetings in schools to coordination centres that are officially the government will have to be established discuss issues such as discrimination, recognised by the clubs and the by the new person responsible for sports the ethical values of sport, and the authorities. Although the group was formed following the elections in April 2008. importance of fan culture. This Nel in 1970 it has only started to become more FISSC is a non-profit organisation dialogo con i giovani si è infatti potuta active since June 2007. FISSC claims to whose structure is based on democratic riscontrare una risposta generalmente have about 50 members, representing principles and bound by its statutes87. The positiva ed un notevole interesse da some 1.5-2 million-football fans. Their aim annual general meeting elects the board of parte dei ragazzi coinvolti, il tutto is to unite all the coordination groups of directors and the other officers in the legal, nella direzione di un apprendimento supporters’ clubs in all the clubs of Serie auditor and treasurer boards. The fee for e di una più profonda conoscenza dei A, B and C (now Lega Pro), and to lobby members varies depending on their league fenomeni legati al tifo, ma anche, a lungo for supporters’ interests through forming status, with those from Serie A charged termine, nella rivalutazione di una sana constructive dialogue with the clubs and €200, while those from Serie B pay €100, passione sportiva e nel radicamento the authorities. They seek to be consulted and coordination centres from Lega Pro di un approccio positivo all’evento ste in football legislations and, for example, pay €50. Only one coordination association dialogue has generally received a positive demand amendments to the legislation on of any given club can currently join the response and the children involved have the purchase of tickets. group. However, some clubs, like Roma, shown a significant level of interest, They plan to help organise and develop have two, or even three, coordination resulting in a deeper understanding of the the coordination centres into social associations, and so the general meeting phenomena associated with the Ultras coordination centres, paying particular in June 2008 will decide who to admit, and and general fan culture. attention to football related activities this will probably lead to them broadening The group is not legally an association, such as festivals and sports initiatives. To their membership regulations accordingly. but rather a project within a sports achieve this, the group wants to establish The board meets every month at one promotion association. It is funded by partnerships between the various of the clubs with representatives of all the FARE (indirectly by UEFA) and also through coordination centres, to allow regular members, and the meeting often includes other sources of financing on various meetings with representatives for the the chairmen of the football clubs and the levels, and it is also a member of the FSI. exchange of ideas and concerns. mayor of the city that they are meeting in. Progetto Ultrà is run by one part-time and They oppose any form of violence and All the meetings end with an additional three full-time members who are based promote proper behaviour before, during open meeting with the press, although so in Bologna, and one full-time member and after a match, e.g. by having staff from far the media interest has been limited. who is based in Rome. In Bologna they the coordination centres inside the stadia. Throughout this research it became have a documentation centre dedicated FISSC also supports the development of clear that the group, re-launched in 2007,

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY is still in its infancy and at the beginning of the potential for lobbying for the rights of fan to improve Italian football appear weak, this study hardly anyone we spoke to had groups on a national level, and could help misguided, or even counter-productive. heard of the group, let alone their agenda. to increase their influence on the club level. Progetto Ultrà, together with a Supporters However, within the last month the group Progetto Ultrà is lobbying for recognition of Direct Europe, should put an implementation has grown rapidly. Currently, their main fan culture as a social phenomenon and for plan into practice and establish adequate objective is to create a database of their adequate strategies that can improve the legal and governance models for supporters’ members, and they will also send out charged atmosphere within Italian football. groups, which would be tailored to the surveys that will allow members to express The project has the potential to lobby for various cultural environments, to improve the their views and concerns. Ultra groups, and other football fans, who general perception of football fans in Italian The feedback has been positive with have changed or want to change so they society and increase their involvement in the regards to a Supporters Direct Europe can be actively involved in the community community. Part of the implementation plan and the potential services that can be and in the running of their clubs. should also focus on involving the FISSC and provided to fan groups in Italy who want Overall, we received positive feedback the Ultras, as well as tackling the question of to be involved in the running of their clubs. from all the groups in Italy that we spoke how to incorporate the authorities. However, an involvement in decision- to: the fan groups, Progetto Ultrà, and the making processes still seems to be alien to one national fan body, FISSC. We spoke 4.1.1. Image of Football Supporters many, hence the organisation of a national to groups who are proactive and desire Irrespective of the tremendous popularity agenda through FISSC appears to be a more involvement, even though all of them of football, match-going fans generally step too far. lack any long-term strategy for increasing have a very one-dimensional image in and strengthening their influence. The Italy. Not just the authorities, but often the general perception is that the environment communities as well, see them as a violent, 4. Suggestions is getting worse for football fans, and un-organised bunch of barbarians. This several groups understand that they have can be partly linked to low attendances The outline above shows the diverse range to be actively involved to implement any (most Italians, even those who are very of football fan culture in Italy. Mapping change on this situation. Nevertheless, interested in football, do not go to matches) out the various fan cultures, existing fan deeply rooted disillusion and paralysis and to the sensationalist coverage of groups and their agendas proved to be inherent in Italian society should not be violent incidents by the popular media. The challenging. There are two different camps underestimated, which in turn makes any lack of acknowledgment of Italian fan culture of organised fans in Italy: the Ultras and call for change difficult. Activism in Italy as a social phenomenon appears to be the the fan clubs. The Ultra scene is hugely tends to be supported by short-term plans immediate problem. However, the groups diverse and disunited, with very different only, and this does not just occur in football, we have been in contact with do not fit the philosophies followed among the different but is present throughout the society. label ‘anti-social’. Italian football has an groups. Fan clubs can be characterised The analysis of the various initiatives from obvious problem with violent fans, but this as classical supporters’ clubs, united different fan groups in Roma, Parma, research has shown that the phenomenon in the coordination centres, and they Brescia, Bologna, and Eboli shows that is not all-encompassing. If fans wish to be handle, for example, ticketing and travel enthusiasm to help clubs survive exists for taken seriously in their attempts to gain extra to away games. Some fan clubs and their a certain period, but dies out very quickly. influence in their clubs a crucial step forward coordination centres are better organised It remains to be seen if the initiatives at would be to focus on an extensive makeover than others, which is largely related to the Bari will survive the first stage of saving the of their current image. As previously scope of their statutes and funding. club and secure long-term involvement in mentioned, there is no single fan culture In principle, fans are not involved in the running of their clubs, while that at La and the identification of the non-violent fans any decision-making processes at the Spezia has already failed. Apart from the and subsequent promotion of their positive club. No general or formal contact worth various cultural reasons, the main problem characteristics would require the fan mentioning exists between the clubs and appears to be that organised football fans movement to be observed more closely. their fan bases. The main problem seems in Italy are not aware that actually they can Progetto Ultrà’s ‘Value of Sport’ to be that Italian fan culture has not been be involved over the long-term, and hence seminars have already begun to improve recognised as a social phenomenon yet, they do not believe that they have any teenagers’ perception and understanding and is therefore not targeted accordingly other choice. A Supporters Direct Europe of fan culture and the social aspects by the authorities or the clubs. Fans are would have to raise awareness about fan of sport. This project should be run kept in isolation and seem to be considered ownership and long-term involvement in nationwide to further improve knowledge as an annoying by-product of football. the running of clubs. The most important about the social importance of sport and Nevertheless, initiatives have existed role for a Supporters Direct Europe at this the diversity of fan culture. The idea of where fans have raised enough money, stage is in empowerment and creating, the democratisation of football via fan bought shares, and helped their club to maintaining and supporting fan networks. ownership could also be promoted through survive. However, the fan groups did not What is critical is that the existing groups these seminars or workshops. see their shares as marketable assets, and do not remain isolated, either in reality or any long-term approach or involvement in perception. It would be advantageous for 4.2. Adequate Legal Structures of running their club seemed alien to them. In there to be some formal presence by way Supporters’ Groups general, fan groups simply do not have any of a development officer based in Italy, It is recommended that supporters act in strategies, nor do they follow any particular because as has been observed, networks the form of organised bodies to enable ownership and governance models. The need to be established and maintained. them to participate in the structure of the re-establishment of FISSC, the federation The authorities seem to have no definite club. Supporters’ clubs would be able to of coordination centres, which is the only idea of whom they are actually dealing exercise a direct influence in the decision national supporters group in Italy, provides with, which makes most of their attempts making processes of their football club if

%8%#54)6%35--!29 )TALY they held shares in the company. There F.C. or Milan A.C., intending to follow the transparent structure imposes additional does not seem to be any restrictions example of Lazio, Juventus or Roma. The challenges to fan involvement, and in the preventing unincorporated associations majority of the stock in Italian football long-term it is essential that any model of being shareholders of football clubs, clubs remains in the hands of majority fan involvement increases transparency at although it should be mentioned that if the shareholders, which in most cases is an the clubs. This could be achieved through sole purpose is share acquisition it would affluent family. The traditional patronage the voluntary implementation of more be legally incompatible with the non-profit system, which is dominant in Italy, does transparency related measures, national character of members’ associations. not provide supporters with much leeway regulation, initiatives by FIGC and Lega Therefore, ‘if the main or exclusive purpose where obtaining an influential position Calcio, or UEFA regulations. of an entity is to manage a shareholding in within the company, and thereby exerting the football club, it may be worthwhile to an influence on its management, is 4.4. Progetto Ultrà structure it as a limited liability company’88. concerned, with public pressure being the Progetto Ultrà has been identified, As minority shareholders supporters’ only means open to them. on various levels, as the main driver clubs would have certain rights like The advantages of a company would behind improvement in the Italian fan inspection and information rights, and be more efficient corporate governance movement. Progetto Ultrà should promote rights for challenging resolutions at the and a limited liability of the membership. meetings, involving various sides of the shareholders meeting, although the The drawbacks would be the costs local fan scene, on a regional and local influence of minority shareholders in and length of incorporation, publicity level to encourage the possibility of club management is limited. Therefore, requirements (whereas an unincorporated fan involvement and ownership, while it may be worthwhile for supporters and association has no publicity to comply providing advice on how to organise it. supporters’ clubs to set up a separate with), and the fulfilment of a number of We believe that this is a key necessity entity, contributing all the shareholdings requirements for allowing the assessment and would overcome the distanced, and that they hold in the football company, of the company’s financial status by often nonexistent, relationships between and allowing it to act as a single unit. This potential creditors (company books, the local fan clubs and the Ultra groups. would, of course, require a high level of balance sheets, reports and so on), all of Although initial contacts could come from organisation and coordination among which are costly and time consuming. just one side (the Ultra group or a club/ supporters’ clubs89, which our research Generally, it is not simple to suggest coordination centre), different sides should shows is mostly missing. However, a which of these two options, i.e. associations certainly attend these meetings. We also Supporters Direct Europe could help – whether registered or unregistered – and believe that positive examples should supporters’ groups who are willing to companies, is the best for supporters be highlighted, considering the feeling have a say in the running of their clubs who are willing and able to buy shares of powerlessness within fan groups, to organise themselves accordingly to in their football clubs. Hence, we believe with an intention of providing inspiration achieve this end. that Progetto Ultrà, together with a to other scenes. Hence, these models An additional potential step towards Supporters Direct Europe, should develop of best practice could encourage other granting more power to supporters’ models of suitable legal structures for fans in their attempts at gaining influence groups in the decision-making process fan ownership and involvement for the within their clubs, and so should be within football clubs could be allowing a Italian supporters’ groups. Progetto Ultrà highlighted by a Supporters Direct Europe. representative from a supporters’ group knows the fan cultural environment in Italy, Furthermore, once a certain number of which has a qualified minority shareholding, while Supporters Direct are specialised interested fan groups become involved, to participate in the management meetings. in ownership and governance structures Progetto Ultrà could be identified as the One could think of framing this as a mere (not just in the UK). Cooperation between Italian Supporters Direct. right of the supporters’ representative to both organisations could help to establish The group has well-established links attend as an observer, or to supply it with models of best practice and, considering to the authorities and it is expected to a consultative vote. Apparently, ,AZIO the scepticism of Italian supporters where work on the promotion of the Supporters’ )NVESTIMENTI did attempt to do this, but the authorities are concerned, the support Charter in Italy 2009, a proposal presented they had no success. On the face of it, offered by a Supporters Direct Europe and to the Sports Ministry before the change in and from a purely legal point of view, it is Progetto Ultrà would probably be accepted. government during April 2008. As Progetto not inconceivable that legislation could Ultrà promotes a two-way strategy, the be passed that would require football 4.3. Governance Guidelines via Statutes Supporters’ Charter, developed by a clubs to allow supporters’ groups with Our research shows that the working group, would serve as a practical a qualified shareholding to appoint an communication and cooperation guide for assisting clubs and fans in observer/consultative representative to between controlling shareholders and jointly developing and establishing their their managing body. However, we hasten minority shareholders, when they exist, relationships, while helping supporters to to add that to the best of our knowledge is at best limited. Supporters and other achieve recognition and representation. nothing of this kind has been seriously stakeholders have even less influence At the same time, the group working on the proposed in Italy so far. on decision-making processes, and charter could develop and become a more The main legal hurdle is that the all stakeholders are at the mercy of the active group of people who are willing and statutes of all corporate structures allow dominant owner. Overall, the structures capable of promoting fan ownership and for the restriction of access to capital by fail to provide a supportive environment helping supporters to have an active say in means of pre-emption or consent clauses, for enabling positive cooperation running their clubs. and only the floating capital of a listed SpA between stakeholders, and other modes Furthermore, Progetto Ultrà could is open to the public. Additionally, only of operation cannot emerge easily as encourage the reconsideration of the three clubs are listed companies, with no the actual design of those structures law that prohibits all relations between other major clubs, such as Internazionale lacks sufficient transparency. This non- the clubs and fan/Ultra groups, which

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY are currently making it impossible for for their members on local and national awareness about fan involvement and supporters and the clubs to establish levels although they presently do not provide Ultras with a clear choice. The mutual relationships. offer sufficient services. As the FISSC is study showed that there is no one Ultra recognised by the football association its movement that is violent and hostile 4.5. Coordination Centres members are not affected by the Melandri- towards everybody else. On the contrary, The coordination centres, however, are Amato decree and therefore there is no there are Ultra groups with a proactive well organised and democratic. Almost legal barrier regarding the contact between social attitude, and they have to be involved 44 coordination groups from Serie A, B, the fan clubs and the club. in the process of fan democracy. and Lega Pro are members of the Italian The FISSC has the potential to The difficult relationship between the Federation of Football Supporters Clubs become a representative group, with an Ultras in general and other fan groups, (Federazione Italiana Sostenitori Squadre estimated 50 affiliates by July 2008. They which in most cases do not communicate di Calcio (FISSC)), which is recognised are exploring the field they are operating with each other, will be a significant by the authorities and was reformed in in, are positive regarding future fan challenge to any future developments in June 2007. The associations, through ownership and involvement in the running Italy. The atmosphere in and outside the this national lobbying group, have the of their clubs, and they want to increase stadium can be very hostile, and it can potential to increase their influence, their engagement with Supporters Direct. be difficult to get the community-active not only on clubs, but at a national level We suggest that a Supporters Direct Ultras and fan clubs to even sit around the as well. Supporters Direct has received Europe raises awareness at the football same table. However, a Supporters Direct positive feedback from the FISSC, as clubs, regarding fan ownership among Europe could support Progetto Ultrà in a has the involvement of supporters in the cooperation centres of fan clubs, mediating role to raise awareness about fan the running of their clubs. However, this through their connection to the FISSC, ownership or other models of involvement concept seems to be alien to many of while additionally helping by providing its in the running of their clubs. the centres themselves at the same time, expertise in the governance structure of especially as the concept of setting up a fan groups. However, we believe the FISSC 4.8. Increasing Supporters’ national agenda through FISSC appears could also benefit from guidance from the Involvement in their Communities to be a big step for them. FSI, as the group is fairly young and mainly Members have set up initiatives to raise Objective and governance structures concerned with supporters’ club issues money for several clubs in the lower are outlined in many groups’ statutes, like travel, ticketing, and anti-racism. leagues due to the financial difficulties although matching strategies that support 4.7. Ultras that they are facing, and these initiatives them are not in place. A Supporters Direct It is inherently rather difficult to include have all been based on relationships with Europe would have to raise awareness Ultras in football politics as they generally the community. An important goal of about fan involvement among the want to be independent from the authorities Supporters Direct is to increase supporters’ coordination centres, because so far they and simply do not trust anyone who involvement with their communities to help do not know that they have any choices makes money in football. They are against them strengthen bonds between their club or that there are ways for improving modern football (NOALCALCIOMODERNO), but and its community. democracy at their clubs, as their issues due to their philosophy they are limited in How a supporters’ group can help generally do not seem to correspond with their available methods for changing their to strengthen bonds largely depends on the clubs objectives. Support, advice current situation. the situation, both locally and nationally. and information should be offered to As the study shows, some groups Possibly the key is to be the broker coordination centres by a Supporters want to take responsibility to prevent between the different groups; the club, the Direct Europe and through doing so their themselves from being forgotten or even fans and perhaps groups that are under statutes and influence ought to improve. wiped out. During the research, we found represented in football. The objective Considering that 50% of season several groups who want to make changes, is to increase understanding, develop ticket holders do not currently belong to or already have, to their strict philosophy, new relationships, as well as improve the a club or consider themselves Ultras, the becoming more open and wishing to be reputation of supporters. potential for mobilising them exists. involved. The study showed that there are Supporters in Italy could improve both social aspects to Ultra groups that could their reputation and profile by being active 4.6. FISSC be widely beneficial, not just for fan groups in their communities. Although worthwhile During this research it became clear that the in Italy, but through encouraging other Ultra on their own merits, as the activities FISSC, the only national supporters group groups in Europe. The groups we have may lead to an increased membership, in Italy and re-launched in 2007, is still in its been in contact with all have competently and therefore revenue, the activities infancy, and hardly anyone we spoke to in organised and well perceived community would more importantly give the group the beginning of the study had heard of the projects for improving relationships within credibility with key stakeholders, such group, let alone their agenda. However, over their area. Ultra groups have also been as the local authority. The importance of the last few months the group has grown involved in attempts to buy shares in this credibility may demonstrate itself if rapidly. The group is recognised by the their clubs and in starting other initiatives the clubs changed their legal structure to clubs and the FIGC, and as a Supporters for drawing attention to the deplorable allow supporters the opportunity to buy Direct Europe would have to liaise with the financial circumstances at their clubs. At shares and, if they wished, to take control FISSC to establish good relationships with Pro Ebolitana, Ultras even ran the club. of the club. For example, the local authority the coordination groups. FISSC is interested The feedback concerning a Supporters may then offer its support, as it would be in the work of Supporters Direct and fully Direct Europe has been very positive assured that the group wished to develop supports fan ownership. from the Ultra groups we have spoken to, a real community club, which in turn would The group is currently focusing on and a Supporters Direct Europe should be beneficial for the communities and the quantitative growth, and they aim to lobby collaborate with Progetto Ultrà to raise local authority itself.

%8%#54)6%35--!29 )TALY Due to the limited resources of a the factionalisation and passivity of much for football in Italy. They have mentioned supporters group and the fact that of the supporter base, are all elements of that supporters should have a say in the community activities are likely to be new Italian society that go well beyond football. direction that their club takes. to most them, the projects would probably The cases where fans became active and Extensive lobbying for more democratic have to be “softer”; meeting an identified started campaigns, to either raise money to fan representation will be required to need but without it being too intensive on help the club or to buy shares, showed that raise awareness of the success that fan their time. Through time as the supporter initiatives die out once an authority figure involvement has had in the UK. Hence, groups become active in their communities steps in. Any strategies that are grounded meetings between Supporters Direct and appropriate new roles may be developed in fans having a long-term influence in the the FIGC, which is already communicating and new activities identified. A result running of the club seem to be beyond the with the FISSC and opening up to fan related would be the improvement of the image conception of many Italian football fans. issues, could be a start in what will need of supporters and they can be seen as a Paradoxically, the level of trust for institutions to be, in many ways, a “consciousness- credible stakeholder, both with the club in general is very low, which is followed raising” exercise. The Minister concerned and the community. Coupling the brand of by a lack of respect and a general belief and Lega Calcio should also be involved the club with supporters groups may create that everyone, including the government, in this process as ‘fan involvement’ is a interest in communities and make their is hiding the truth. Most fan groups in difficult phrase due to its association with activities quite an attractive proposition. European football are at least sceptical the specific definition of fan culture as an The power of football clubs to be used as about the authorities, so this attitude is almost anti-social movement, especially to tool for improving communities has been nothing new. However, the situation in Italy where the Italian authorities are concerned. demonstrated in England, and has improved is unique due to corruption and organised Progetto Ultrà, together with a Supporters the reputation of football clubs and football crime being deeply rooted in Italian society. Direct Europe, could help to promote the in general. With the right approach this Paired with a general acceptance of these social aspects of fan culture in general, could also be the case for Italy. conditions, any lobbying by a Supporters and the potentially positive influence that A moral case could also be made as Direct Europe will almost certainly be faced fan democracy and ownership can have supporters may actually have a negative with a deep disbelief in the possibility of on the sporting and financial stability and impact on the communities surrounding change. As the relationship between the performance of football clubs. a football club, and therefore this fans and the authority has two sides to It is clear that institutions and football negative impact could be balanced and it, an Italian model of Supporters Direct governing bodies need to be involved in hopefully outweighed by the supporters’ would need to be accepted, supported and the process of structural change. After the groups providing public benefit through promoted by both parties. elections in April 2008, Italy does not have community activities. Supporters are a The relationship between fans on the a Sports Minister anymore rather sport is key stakeholder of the football club and one hand, and governing bodies and the governed by the Minister of Youth Politics. could provide an important and valuable clubs on the other, is almost nonexistent, As the FIGC supports the involvement link with the communities the club affects. and there is very little evidence that this of fans and is in contact with FISSC, The kudos associated with being a football is about to significantly change any time we believe that a fruitful relationship club could be used to develop activities soon. There is certainly less dialogue between the association, Progetto Ultrà that meet local needs. between the authorities and the supporters’ and a Supporters Direct Europe would organisations than there is in countries such help to improve the relationship between 4.9. Football Authorities and as England and Germany. The government football supporters and their clubs. In Regulations and Lega Calcio did not consult fan groups order to improve the dialogue between From an Italian point of view, a broad scope on any of the football related issues we have clubs and supporters, the prohibition on of activity for a Supporters Direct Europe discussed. However, the FIGC has signalled choreographic elements, such as banners is questionable. It is debatable at best that it wants to improve dialogue with fan and flags, should be removed to foster the whether a trust movement could grow from groups and believes a central national positive aspects of Italian fan culture and within the fan scene itself. The widespread organisation for advising club-based facilitate the setting up of dialogue with acceptance of paternalism, along with supporters groups could be beneficial the Ultra groups.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY

1 For more information on this so called “southern problem” , see stati colpiti da divieti o prescrizioni di cui all’articolo 6 della citata legge Guschwan, M.,’Riot in the Curve: Soccer Fans in Twenty-first century Italy’, n. 401 del 1989, o condannati per reati commessi in occasione o a causa Soccer & Society, Vol. 8, no. 2/3, April/July 2007, pp. 250-266, p. 257. di manifestazioni sportive, ovvero che siano destinatari di una misura di 2 Fischer, I.,’In a funk, Italy signs an aria of disappointment’, The New York prevenzione personale o patrimoniale. Inoltre, stabilisce il divieto per le Times, 13 December 2007, http://www.nytimes.com/2007/12/13/world/ medesime società di corrispondere contributi, sovvenzioni, facilitazioni di europe/13italy.html?pagewanted=3&8br; According to the EU statistical qualsiasi genere ad associazioni di tifosi comunque denominate. office Spaniards are now earning more than Italians. Eurostat (European 32 Swiss Institute of Comparative Law, ‘Comparative Study of the Legal Commission), 17 December 2007, http://epp.eurostat.ec.europa.eu/ Structures of Football Clubs and Supporters’ Organisations in 45 portal/page?_pageid=1090,30070682,1090_33076576&_dad=portal&_ Jurisdictions’, Volume II, 2008, pp. 5-23, p.16-18. Norme organizzative schema=PORTAL. interne della FIGC, http://www.figc.it/it/93/3817/Norme.shtml. 3 33 Fischer, 2007; Caruso, R., ‘Public Spending and Organised Crime in Italy Chaker, A.-N.,’Good Governance in Sport, A European Survey’, #OUNCILOF - A Panel-Data Analysis over the Period 1997-2003’, Instituto di Politica %UROPE0UBLISHING, 2004, pp. 1-101, p.71; www.figc.it. Economica, Università Cattolicia del Sacro Cuore di Milano, January 2008; 34 For the analysis of ownership and governance structures of Italian football Saviano, R., Gomorrah: Italy’s Other Mafia, 2008. clubs and the most adequate legal structures for supporters’ groups, 4 Aslam, A. and Corrado, L., ‘No Man is an Island: the Inter-personal we have made extensive use of the Swiss Institute of Comparative Determinants of Regional Well-Being in Europe’, Cambridge University, Law, ‘Comparative Study of the Legal Structures of Football Clubs and April 2007, http://www.econ.cam.ac.uk/dae/repec/cam/pdf/cwpe0717.pdf. Supporters’ Organisations in 45 Jurisdictions’, Volume II, 2008. 5 Fischer, 2007. 35 Art 10(10) 91/81; for a detailed analysis of the structures of SpA and Srl, 6 Fischer, 2007. see Swiss Institute of Comparative Law 2008, p. 7-11. 7 Bianchi, M. and Bianco, M.,’Italian corporate governance in the last 15 36 These are: Atalanta Bergamasca Calcio S.p.A., Cagliari Calcio S.p.A., years: from pyramids to coalitions?’, European Corporate Governance Calcio Catania S.p.A., Empoli S.p.A., ACF Fiorentina S.p.A., Genoa Cricket Institute, Finance working paper No 144/2006, November 2006, p. 1-36. and Football Club S.p.A, Internazionale Football Club S.p.A., Juventus 8 Bianchi and Bianco, 2006, p.1-2. Football Club S.p.A., Lazio Società Sportiva S.p.A., Milan Associazione 9 Bianchi and Bianco, 2006, p. 3. Calcio S.p.A, S.S.C. Napoli S.p.A., U.S. Città di Palermo S.p.A, Parma 10 http://www.ffi.org/genTemplate.asp?cid=186. Football Club S.p.A, Reggina Calcio S.p.A., Roma Associazione Sportiva 11 http://www.ffi.org/genTemplate.asp?cid=186; see also Mazzola, P. and S.p.A., Sampdoria Unione Calcio S.p.A., A.C. Siena S.p.A., Torino Football Marchisio, G., ‘The Role of Going Public in Family Businesses’ Long- Club S.p.A., Udinese Calcio S.p.A. Lasting Growth: A Study of Italian IPOs’, Family Business Review, Vol 15, 37 Share companies: Ascoli Calcio S.p.A., Unione Sportiva Avellino S.p.A., No 2, June 2002, pp. 133-146. A.S. Bari S.p.A., Bologna Football Club 1901 S.p.A., Brescia Calcio S.p.A, 12 Bianchi and Bianco, 2006, p. 5. A.C. Cesna S.p.A, U.S. Lecce S.p.A., F.C. Modena S.p.A., Piacenza 13 Bianchi and Bianco, 2006, p. 3-4. Football Club S.p.A, Pisa Calcio S.p.A., U.S. Triestina Calcio S.p.A., 14 Bianchi and Bianco, 2006; Sylvers, E., ‘Shareholders in Italy Begin Vicenza Calcio S.p.A.) and limited liability companies U.C. Albinoleffe to Accept Role of Inquisitor’, The New York Times, tytimes.com, 12 S.r.l., A.C. Chievo Verona S.r.l., Frosinone Calcio S.r.l., U.S. Grosseto May 2004; Sylvers, E.,’Italian bourse unveils new governance code’, F.C. S.r.l., Associazione Calcio Matnova S.r.l., F.C. Messina Peloro S.r.l., International Herald Tribune, iht.com, 15 March 2006. Revanna Calcio S.r.l., Rimini calcio Football Club S.r.l., Spezia Calcio S.r.l., 15 Baroncelli, A. and Lago, U.,’Italian Football’, Journal of Sports Economics, Treviso Football Club 1993 S.r.l. 7 (1), 2006, p. 13-28. 38 http://www.bolognafc.it/pagen.asp?c=3983&m=11&l=1. 16 Morrow, S., The People’s Game? Football Finance and Society, 2003, p. 116. 39 Global Catholic Network, ‘[Vatican has not bought Ancona football club’, 17 Deloitte, Annual Review of Football Finance, May 2008, p. 14. http://www.ewtn.com/vnews/getstory.asp?number=82707. 18 Guschwan, 2007, p. 263. 40 http://www.csi-net.it/vedi_notizia.php?id=264. 19 Foot, J., Calcio, a history of Italian football, 2007, pp. 389-425. 41 ‘Vatican partnership with football team turns sour’, http://www. 20 “C’è un principio fondamentale, che ho sempre seguito. E’ l’indipendenza timesonline.co.uk/tol/comment/faith/article3392791.ece?print=yes&rand assoluta, la politica deve stare lontana dallo sport. Non ci sarà un num=1213707588503. ministerodello sport. Dovranno governarlo democraticamente gli enti 42 For a detailed analysis of corporate governance of SpA and Srl, see Swiss preposti”, Silvio Berlusconi, quoted in La Gazzetta dello Sport, ‘Berlusconi Institute of Comparative Law, 2008. apre a Soros e ripensa alla superlega ‘, 23 April 2008. 43 Soccer Investor, 27 November 2007; http://www.juventus.com/site/ita/ 21 http://www.osservatoriosport.interno.it/. FIN_pubblicazionifinanziarie.asp?myyear=20072008 22 By March 2008 fans in the stadiums will be overseen by especially trained 44 http://www.juventus.com/uk/societa/detail.aspx?lml_language_ stewards instead of policemen. id=0&trs_id=1407000 23 www.osservatoriosport.interno.it, 22 February 2008. 45 Morrow, 2006, p. 105. 24 Italy adopted Decree Law 282 of 24 December 2002, which later became 46 Norme organizzative interne della FIGC, http://www.figc.it/it/93/3817/ Law No. 27 of 21 February 2003. Norme.shtml. 25 Morrow, S.,’Impression Management in Football Club Financial 47 Swiss Institute of Comparative Law 2008, p. 18. Reporting’, International Journal of Sports Finance, 2006 (1), pp. 96-108. 48 Swiss Institute of Comparative Law 2008, pp.15-16. 26 Morrow, 2006, p. 101. 49 Soccer Investor, 16 June 2008. 27 http://europa.eu/rapid/pressReleasesAction.do?reference=IP/05/ 50 Soccer Investor, 5 September 2007. 1271&format=HTML&aged=0&language=EN&guiLanguage=en. 51 Deloitte 2008, p. 13. 28 http://europa.eu/rapid/pressReleasesAction.do?reference=IP/04/ 52 Deloitte 2008, p. 14. 854&format=HTML&aged=1&language=EN&guiLanguage=fr. 53 Deloitte, Annual Review of Football Finance, 2007, p. 15. 29 http://europa.eu/rapid/pressReleasesAction.do?reference=IP/05/ 54 See “Calcio:via libera dal Governo al decreto sui diritti tv”, Il Sole 24 Ore, 9 1271&format=HTML&aged=0&language=EN&guiLanguage=en. November 2007. 30 Morrow, 2006, p. 105. 55 See, e.g., “Fumata bianca in Lega Calcio: raggiunto l’accordo sui dirittitv”, 31 L’articolo 8 prevede il divieto per le società sportive di corrispondere Il Sole 24 Ore, 31 October 2007. sovvenzioni, contributi e facilitazioni di qualsiasi natura a coloro che siano 56 See “Diritti Tv calcio: la Juve vince lo scudetto, con le nuove norme

%8%#54)6%35--!29 )TALY

sarebbe la più ricca”, www.key4biz.it. 70 Swiss Institute of Comparative Law, 2008, p. 18-19. 57 See “Calcio:diritti tv, antitrust apre istruttoira sulla Serie B”, Corriere della 71 Swiss Institute of Comparative Law, 2008, p. 19; www.giulemaidallajuve.it. Sera, 18 April 2008. 72 Major teams have half a dozen or more Ultra groups. 58 La Repubblica, ‘Polivalente, verde e remunerativo è il momento dello 73 Foot 2007, pp. 3333-356; Pilz G., Bahn, S., Klose, A., Schwenzer, stadio di club’, 26 May 2008, http://www.repubblica.it/2008/05/sezioni/ V., Werner, S., Woelki, F.,’Wandlung des Zuschauerverhaltens im sport/calcio/nuovi-stadi/nuovi-stadi/nuovi-stadi.html. Profifussball’, Bundesinstitut fuer Sportwissenschaft, 2006; Guschwan, 59 La Republica 2008. 2007, pp. 250-266; Giulianotti, R. and Williams, J.,’The birth of the ‘ultras’: 60 For the requirements the clubs have to fulfil to come under this rule please The rise of football hoologanism in Italy’, in Game without frontiers: see, Vialli, G. and Marcotti, G.,’The Italian job – A journey to the heart of Football, identity and modernity, 1994, p. 359-381. two great footballing cultures’, 2006, p. 398. 74 Guschwan, 2007, p. 254; 61 Baroncelli and Lago, 2006, p.13; Morrow 2003, p. 116. 75 Pilz et al, 2006, p. 167. 62 Morrow, 2003, p. 127. 76 Pilz et al, 2006, p. 168. 63 Vialli and Marcotti, 2006, p. 375. 77 Pilz et al, 2006, p. 171. 64 Baroncelli and Lago, 2006, p. 15. 78 Guschwan, 2007, p. 262. 65 Vialli and Marcotti, 2006, p. 397. 79 Most of the information about Ultrà groups has been gathered from 66 Vialli and Marcotti, 2006, p. 399. interviews with their representatives, which will remain anonymous. 67 Interviews conducted in Italy. 80 The following outline of initiatives is not conclusive. 68 http://www.asromaultras.org/. 81 The website is online since the 6th December 2007, www.compriamola.it. 69 ‘Unincorporated (“Non-Registered”) Associations Internal organisation 82 http://www.lospeziasiamonoi.com/home.html. and management of associations which are not recognized as legal 83 Soccer Investor, 22 April 2008. entities are regulated by agreements among members. Such associations 84 http://www.catanzarocalcionews.it/news_cats.php?cat_id=35. can be parties in judicial proceedings, being represented by those 85 The business plan was published on www.veneziaunited.com, but the upon whom the presidency or management is conferred under such website doesn’t exist anymore. agreements. Contributions of members and property acquired through 86 Progetto Ultrà will organise Fan Embassies for the Euro 2008 and is a these contributions constitute the common assets of the association. founding member of the FSI (Football Supporters International) and of During the life of the association, individual members cannot request FARE (Football Against Racism in Europe). partition of the common assets nor claim a share in the case of withdrawal. 87 www.fissc.it. As regards obligations, third persons can enforce their rights against 88 Swiss Institute of Comparative Law, 2008, p. 20. the common assets of the association for obligations undertaken by the 89 Swiss Institute of Comparative Law, 2008, p. 20. person representing it. Persons who have acted in the name and on behalf of the association are also personally liable INSOLIDO for such obligations’, Swiss Institute of Comparative Law, 2008, p. 14.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? )TALY

References

Aslam, A. and Corrado, L., ‘No Man is an Island: the Inter-personal ,A2EPUBBLICA, ‘Polivalente, verde e remunerativo è il momento Determinants of Regional Well-Being in Europe’, Cambridge dello stadio di club’, 26 May 2008, http://www.repubblica. University, April 2007, http://www.econ.cam.ac.uk/dae/repec/ it/2008/05/sezioni/sport/calcio/nuovi-stadi/nuovi-stadi/nuovi- cam/pdf/cwpe0717.pdf. stadi.html.

Baroncelli, A. and Lago, U.,’Italian Football’, *OURNAL OF 3PORTS Mazzola, P. and Marchisio, G., ‘The Role of Going Public in Family %CONOMICS, 7 (1), 2006, p. 13-28. Businesses’ Long-Lasting Growth: A Study of Italian IPOs’, Family Business Review, Vol 15, No 2, June 2002, pp. 133-146. Bianchi, M. and Bianco, M.,’Italian corporate governance in the last 15 years: from pyramids to coalitions?’, Europeam Corporate Morrow, S.,’Impression Management in Football Club Financial Governance Institute, &INANCE WORKING PAPER .O , Reporting’, )NTERNATIONAL*OURNALOF3PORTS&INANCE, 2006 (1), pp. November 2006, p. 1-36. 96-108.

Caruso, R., ‘Public Spending and Organised Crime in Italy Morrow, S., The People’s Game? Football Finance and Society, – A Panel-Data Analysis Over the Period 1997-2003’, )NSTITUTO New York: DI 0OLITICA %CONOMICA 5NIVERSIT÷ #ATTOLICIA DEL 3ACRO #UORE DI Palgrave Mcmillan, 2003. -ILANo, January 2008. 0ARMA $AILY, ‘Incidenti Parma-Inter, “solidarietà alle forze Chaker, A.-N.,’Good Governance in Sport, A European Survey’, dell’ordine”’, 19 May 2008, http://www.parmadaily.it/Notizie/ #OUNCILOF%UROPE0UBLISHING, 2004, pp. 1-101. Dettaglio.aspx?pda=CTT&pdi=11899;

#ORRIEREDELLO3PORT, ‘Incidenti Catania-Roma, inchiesta’, 19 May Pilz G., Bahn, S., Klose, A., Schwenzer, V., Werner, S. and 2008, http://www.corrieredellosport.it/Notizie/Calcio/30471/ Woelki, F., Wandlung des Zuschauerverhaltens im Profifussball, Incidenti+Catania-Roma,+inchiesta. Bundesinstitut fuer Sportwissenschaft, Bonn: Hofman, 2006.

Deloitte, !NNUAL2EVIEWOF&OOTBALL&INANCE, May 2007. Saviano, R., Gomorrah: Italy’s Other Mafia, 2008. Soccer Investor, 22 April 2008. Deloitte, !NNUAL2EPORTOF&OOTBALL&INANCE, May 2008. Soccer Investor, 27 November 2007. Fischer, I.,’In a funk, Italy signs an aria of disappointment’, 4HE .EW9ORK4IMES, 13 December 2007. Soccer Investor, 5 September 2007.

Foot, J., #ALCIO A HISTORY OF )TALIAN FOOTBALL, Harper Perennial: Swiss Institute of Comparative Law, ‘Comparative Study of the London, 2007, pp. 333-356. Legal Structures of Football Clubs and Supporters’ Organisations in 45 Jurisdictions’, Volume II, Lausanne, 14 March 2008, pp. 5-23 Giulianotti, R. and Williams, J.,’The birth of the ‘ultras’: The rise of football hoologanism in Italy’, in 'AMEWITHOUTFRONTIERS&OOTBALL Sylvers, E., ‘Shareholders in Italy Begin to Accept Role of IDENTITYANDMODERNITY, 1994, p. 359-381. Inquisitor’, 4HE.EW9ORK4IMES, tytimes.com, 12 May 2004.

Guschwan, M.,’Riot in the Curve: Soccer Fans in Twenty-first Sylvers, E.,’Italian bourse unveils new governance code’, century Italy’, 3OCCER3OCIETY, Vol. 8, no. 2/3, April/July 2007, )NTERNATIONAL(ERALD4RIBUNE, iht.com, 15 March 2006. pp. 250-266. Vialli, G. and Marcotti, G., The Italian Job, London: Bantam, 2006. ,A'AZZETTADELLO3PORT, ‘Berlusconi apre a Soros e ripensa alla superlega ‘, 23 April 2008.

,A 'AZETTA DELLO 3PORT, ‘Parma, nuovi incidenti Tifosi interisti nello stadio’, 18 May 2008, http://www.gazzetta.it/Calcio/SerieA/ Primo_Piano/2008/05_Maggio/18/riccardo_1805.shtml.

%8%#54)6%35--!29 3PAIN

Summary 108

General Introduction to Economic, Political and Cultural Environment 109

1. The Structure of Spanish Football 110 1.1. Real Federación Española de Fútbol – RFEF (Royal Spanish Football Federation) 110 1.2. Liga de Futbol Profesional – LFP (Spanish Professional Football League) 111 1.3. Government 111

2. The Structure of Spainsh Football Clubs – Ownership and Governance 112 2.1. Members’ Associations 112 2.1.1. Ownership Structure 112 2.1.2. Governance Structure 112 2.2. Sports Public Limited Companies (SADs) 113 2.2.1. Ownership Structure 113 2.2.2. Governance Structure 115 2.3. Financial Regulation – Licensing System 115 2.4. Financial Performance 115

3. Fan Culture 116 3.1. Supporters’ Groups 116 3.2. Supporters’ Organizations at the Clubs 117 3.2.1. The Peñas (supporters’ clubs) 117 3.2.2. Official Supporters’ Clubs Consultative Committee – FC Barcelona 117 3.2.3. Minority Shareholders’ Associations 117 3.2.4. Fan Initiatives 119 3.3. National Supporters’ Groups 120 3.3.1. Aficiones Unidas: Asociación de Federaciones de Peñas de Clubes de Fútbol – 120 AFEPE (Association of Federations of Supporters’ Clubs of Football Clubs) 3.3.2. Federación de Accionistas y Socios del Fútbol Español – FASFE 120 (The Federation of Shareholders and Members of Spanish Football Clubs)

4. Suggestions 121 4.1. Adequate Legal Structure for Supporters’ Groups 121 4.2. Governance Guidelines via Statutes 122 4.3. Representatives on the Board and Measures to Increase Attendance in the AGA 122 4.4. Federación de Accionistas y Socios del Fútbol Español – FASFE (The Federation of Shareholders and Members of Spanish Football Clubs) 122 4.5. Implementation of the Rule of Law 122 4.6. Football Authorities 123

Summary

 Spanish football is structured as a 10/1990 on Sport, creates the framework was the establishment of a liability system pyramid, with the Royal Spanish Football within which sports discipline operates. for the clubs’ administrators. In exchange, Federation (2EAL &EDERACIÊN %SPAďOLA the clubs were allowed to defer their debts DE&ÑTBOL(RFEF)) at the top, and with the  In 1992 all professional football clubs towards the state through increasing their regional football federations, where the whose finances showed a negative stake in the football pools. Only four clubs, clubs are registered, affiliated to it. balance had to transform from members’ FC Barcelona, Real Madrid, Athletic de Professional football is governed by associations into Sports Public Limited Bilbao and Osasuna, were able to escape the Spanish Professional Football League Companies (“SADs”). This changed the this restructuring. (,IGA DE &ÑTBOL 0ROFESIONAL (LFP)). The structure of Spanish football and the status However, this strategy proved to be main sports government institution is of supporters dramatically. Previously, inefficient, as the current level of debt the Supreme Sports Council (#ONSEJO all the football clubs were structured as amongst the clubs has risen even higher 3UPERIORDE$EPORTES (CSD)), which is part members’ associations, which meant than that seen in the situation that forced of the ministry of Education and Science1. that the clubs belonged to their members the conversion in the early 90s. Some The Spanish Sports Act, together with the who, in turn, had the capacity to elect their supporters did acquire shares in their general sports rules laid down in Act nº club’s president. The aim of the legislators clubs, thus becoming owners, in response

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 3PAIN to calls from the clubs’ directors about groups), as a valid voice of the supporters’ Accionistas y Socios del Fútbol Español managing the debt problem. However, movement. However, this group does not (FASFE)). The FASFE and its members their stake became progressively less seem particularly interested in management appear to be a supporters’ initiative that significant after several capital increase issues. Supporters who are interested has very similar goals to those held by ventures. Hence, most of the clubs are now in transparency and good management Supporters Direct UK. Indeed, collaboration owned primarily by wealthy individuals, have organised themselves as minority has already established between the who are often also involved in the real shareholders’ associations or independent two entities, as FASFE have requested estate business. These individuals have initiatives at several clubs, depending Supporters Direct’s help in developing established numerous corporations to on the legal structure of their club. Both common strategies for enhancing their further limit their potential liability, which types of organisations were founded by performance. FASFE has also established has led to the minority shareholders feeling shareholders and members who were contact with initiatives (supporters at risk from management abuse. dissatisfied with the management of their belonging to members’ associations) with clubs. These organisations follow the legal similar objectives to their own, with an aim of  Dialogue between the football authorities form of non-profit associations and they are increasing their representative legitimacy. and supporters is mainly restricted to democratically organised. Furthermore, the group is challenging the security issues and corporate social A new association, whose main current predominant ownership structure responsibility campaigns. Currently, the focus is on the increase of transparency of professional football clubs in parliament football authorities only recognise !üCIONES and democracy in football clubs, is the and wish to reinstate the structure of 5NIDAS, the umbrella organisation of the Federation of Shareholders and Members members’ associations in Spanish peñas (the official, club-affiliated supporters’ of Spanish Football (Federación de football.

General Introduction to Economic, Political and Cultural Environment Spain’s constitutional monarchy was established in 1978 after four can be listed on the Spanish Stock Exchange. decades of General Franco’s dictatorship, which had lasted since The management and governance of companies is the end of the Civil War in 1939. It is one of the most decentralised controlled by the board of directors, who are elected by the countries in Europe, being organised as 17 autonomous shareholders for five-year terms. There is no legal obligation to regions2. Each regional government manages its own health and have an independent supervisory board, as there is in Germany, education systems, and some regions have additional specific or to have workers or independent members on the board of competences, e.g.: the Basque Country and Navarra have their directors. Also, the positions of chairman (president of the board own tax systems. The management of sports is also attributed of directors) and CEO (first executive position in the company) to the autonomous regions, according to the distribution of are usually held by a single person, which concentrates the competences as established in the Spanish Constitution3. company’s decision-making process. The population of Spain was around 40.5 million as of July The Spanish corporate scene has been characterised by a 20074. In 2006 the Spanish GDP accounted for $981 billion5, concentrated ownership of firms, strong state intervention, and making it the 11th largest world economy and the 5th largest weak labour participation at the company level8. However, Spain within the EU, with the service industry comprising more than has followed its own unique path towards a new hybrid model of 60 percent of the economy. The GDP per capita is €24,000, corporate governance, adopting practices from different systems, although the income distribution is highly varied geographically. especially the Anglo-Saxon codes9. Spain is moving steadily The northern and central regions (Navarra, Madrid, the Basque from a “state-led” to a broadly “state-enhanced” corporate- Country and Catalonia) have the highest income, while the governance and labour relations system. A new code of good southern region (Extremadura) has the lowest. governance (#ÊDIGO #ONTHE), which mostly consolidates the The Spanish financial system has witnessed significant previous “Aldama” and “Olivencia” recommendations regarding change over the last 20 years. It has undergone a process of corporate governance, will be approved in 2008, although it modernisation and an intensive growth of financial activity, will still be a recommendation and not mandatory. Currently, which has enabled a higher degree of economic development. the principle of “comply or explain” is followed. Therefore, the There has also been important growth in the intermediaries, main listed companies include a specific section that relates to which are those sectors that are not directly linked to banks, corporate governance in their annual reports. Some relevant such as collective investment and insurance companies. Most recommendations for the corporations are, for instance, that Spanish firms are domestically owned as state ownership has a third of the members of the board of directors should be fallen dramatically. The proportion of total equity held by private independent, and that the board should have an internal code and households has also increased to 30%, which is relatively establish audit / remuneration committees. high by European standards. Additionally, in comparison with The main voluntary organisations are structured under the other European countries, the percentage of foreign-capital Associations’ Act of 2002, which entered in to force in 2004. This is ownership remains low at 24% (2005)6. the regulatory framework for political parties and non-governmental Total Spanish Market capitalisation accounts for €1,275.74 organisations (NGOs). NGOs have favourable tax treatment in billion7.The IBEX 35®, used as a domestic and international accordance with their nature as non-profit organisations and their benchmark, and as the underlying index in the trading of social function. Additionally NGOs are funded directly through derivatives, is an index made up by the 35 most liquid securities the individual tax declaration of citizens (citizens can chose to trading on the Spanish Stock Exchange. The most common give up 0.7% of their income tax to the Catholic Church or to legal structure chosen by Spanish companies is the SOCIEDAD NGOs). However, the state does not consider supporters’ clubs LIMITADA(SL), a closely held Limited Liability Company; while to be of public utility, and therefore they do not enjoy this benefit. the second most common is the SOCIEDADANÊNIMA, which is Additionally, the tradition of self-organisation within civil society the equivalent of a UK Public Limited Company. Only the latter varies depending on the historical background of a region.

%8%#54)6%35--!29 3PAIN 1. The Structure of Spanish Football The main sports government institution is the Supreme Sports Council (#ONSEJO Football, both played and watched, is Spain’s most popular sport and there are over 3UPERIORDE$EPORTES (CSD)), which is part 700,000 licensed players, in addition to those playing informally. In 2005, the Sociological of the ministry of Education and Science11. Research Centre (#ENTRODE)NVESTIGACIONES3OCIOLÊGICAS (CIS)) undertook a survey on The professional league is called the the attendance of professional sporting events. This survey showed that most people Spanish Professional Football league (56.1%) had bought at least one ticket for a football event in the preceding year, with (,IGADE&ÑTBOL0ROFESIONAL (LFP)). Spanish basketball being next most popular sport (19.2%). football is structured as a pyramid, with the Royal Spanish Football Federation

14.0 (2EAL&EDERACIÊN%SPAďOLADE&ÑTBOL 13.5 (RFEF)) at the top, and with the regional

13.0 13.0 football federations, where the clubs are 12.9 12.5 12.5 12.4 12.4 12.4 12.4 registered, affiliated to it. The Spanish 12.0 11.8 11.7 Sports Act, together with the general 11.5 11.5 11.0 sports rules laid down in Act nº 10/1990 10.5 on Sport, is the framework within which 10.0 sports discipline operates. 9.5 The main bodies responsible for the 9.0 financial control of the clubs are the CSD 97/98 98/99 99/0000/0101/02 02/03 03/04 04/05 05/06 06/07 and the LFP. The functions granted to each Figures in red express the average millions of attendees. of these bodies are well defined by the 3OURCE!NNUAL2EPORT,&0 Spanish Sports Act, although in practice they are not so clear. The authority of these According to an opinion poll by the CIS in 200710, interest in football amongst Spanish bodies was undermined dramatically when, people is substantial, with two thirds of the population supporting or having an affiliation in the summer of 1995, the relegation of with, a football club. The clubs with the most supporters are Real Madrid (33%) and FC both Sevilla and Celta to the regionalised Barcelona (26%), while Valencia comes third (5%). Information regarding the behaviour of third division (SEGUNDA DIVISIÊN ") was supporters was also taken in the same poll: reversed through political pressure. The relegation was imposed due to the boards of directors of these clubs failing to fulfil Watching the games on TV whenever one can 72.8% their financial duties and obligations in good Having emblems, scarves or flags, of the team at home 42% time. However, the League instead agreed to temporarily change the number of clubs Attending games at the stadium 36.9% in the first division (PRIMERADIVISIÊN) to 22 for the following two seasons. Buying club memorabilia like watches or wallets etc. 24%

Travelling to another city to follow the team 15.3% 1.1. Real Federación Española de Fútbol – RFEF (Royal Spanish Football Travelling to another country to follow the team 2.6% Federation) 3OURCE/PINION0OLLCOMMISSIONEDBYTHE#ENTREOF3OCIOLOGICAL2ESEARCH -AY The Government, through the CSD, delegates some of its own powers over the General Structure of Spanish Football administration of football to the RFEF. While the first and second divisions are managed by the LFP, the RFEF administers all the Ministerio de EducaciÊn y remaining football competitions, which are UEFA Ciencia (Education Ministry) the segunda división B and lower leagues

UEFA licensor (with the assistance of the regional football Consejo Superior de Sports government responsible federations), the Copa del Rey (King’s Cup), Deported – CSD (Higher sports Council) the Spanish Super Cup, and the Spanish National wide Football National team. The constituent members organization delegation of the RFEF come from all levels within Real FederaciÊn Española de Liga de Futbol Profesional Collaboration agreement football: regional football federations, Futbol – RFEF (LFP) (Football Association) (League Association) clubs, coaches, referees, players, and Regional wide Football organization delegation the individuals and legally constituted 19 Professional Football Clubs bodies that contribute to the practice (20 First Division/22 Second Division A) Federaciones Autonomicas and development of football in Spain12. (Regional Federations) However, supporters currently have no role Professional and amateur in the RFEF, although arguably they could Football Clubs be admitted as members considering they can be categorised under article 2.2 Players and coaches of the RFEF statutes as “promoters of the development of football.” Referees The RFEF receives grant funding from the CSD, and as such it is obliged to follow

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 3PAIN a code of good governance as established do receive a report from the league when been agreed by itself and the LFP in their in the $ECRETO DE &EDERACIONES. This they hold their annual meetings, which mutual cooperation agreement. ensures that the RFEF fulfils its duties of contain recommendations on areas of Where a club decides to move it good management, transparency and improvement and a ratio of measures to be could be expected that there would accountability. However, the RFEF has taken, although the clubs are not bound to be consternation amongst that club’s recently been investigated over a failure to these recommendations. supporters, but in this specific case the follow strict expenditure control, which is The LFP is a non-profit institution, reality was the opposite. This was largely compulsory as the controls are established even though its main reason for existing due to Ciudad de Murcia’s small supporter- within the $ECRETO DE &EDERACIONES. is maximising revenue for its members. base17. Indeed, in the city of Murcia the Additionally, there has been a large For this reason, the LFP has established a traditional club is Real Murcia CF, which controversy arising from the RFEF’s failure limited company called 3OCIEDAD%SPAďOLA has a large social following, and now, in to follow electoral timing as prescribed. DE&UTBOL0ROFESIONAL SA14 in order to fulfil Granada, Granada 74 SAD happens to its obligations as a non-profit organisation have a considerable supporter base. 1.2. Liga de Fútbol Profesional – LFP whilst maintaining its additional revenue- At the same time another similar case, (Spanish Professional Football League) maximising role. but in a completely different context, arose The LFP, established in 1984, organises The only dialogue that occurs in the form of “5NIÊ %SPORTIVA &IGUERES”. the top two professional divisions. Its main between the LFP and the supporters is This club was founded in 1919, making it goals are representing the clubs’ interests through the association of federations of one of the oldest clubs in Catalonia with a and marketing the league’s commercial football supporters’ clubs (!SOCIACIÊNDE rich tradition to match. Its main shareholder rights. The LFP, also known as ,A ,IGA, &EDERACIONESDE0EďASDE&ÑTBOL (AFEPE)), and sponsor, Mi Apuesta, made the manages the competitions, schedules which is the only recognised supporters’ decision to move the club to a new area, fixtures and sets the league rules, such organisation. The issues covered in the the city of Castelldefels, which essentially as the restrictions on the number of non- dialogue are always related to security and meant the original club’s personality EEA players. La Liga defines the criteria corporate social responsibility campaigns, disappeared (Castelldefels is 180 Km that must be fulfilled by the clubs before although the LFP does provide the AFEPE away from Figueres). In a first instance the they can take part in the competitions with limited financial support to cover court suspended the change of domicile to that it organises. La Liga uses a basic expenses15. Castelldefels and the RFEF did not accept promotion/relegation system. La Liga the inscription of UE Castelldefels in 2B. runs two divisions: division one, which · Conflict of competences between the However, after the Court of Arbitration has 20 teams, and Division 2A (SEGUNDA RFEF and the LFP – Granada 74 SAD for Sport’s decision on the Granada 74 DIVISIÊN) which has 22 teams. Every year, case the RFEF accepted the move and in the bottom three teams in division one Sports Public Limited Companies the 2007/08 season UE Castelldefels has are relegated to division 2A, and three (SOCIEDADES ANÊNIMAS DEPORTIVAS (SADs)) played in 2B, but have been relegated teams from division 2A automatically get have to follow the general regulations at the end of the season. The minority promoted to the first division. La Liga also applicable to any kind of Public limited shareholders reacted to the decision negotiates with the government on the Companies, except where the particularities by legally challenging the assembly percentage of the soccer betting incometo as established in the Spanish Sports Act that made the key decision over the be invested in the game, and La Liga is 1990 are concerned16. Consequently, relocation of the club but so far Mi Apuesta currently considering how to capitalize on when the owners of Ciudad de Murcia Castelldefels is still currently playing in the growth of internet betting. SAD, according to the required quorum Castelldefels, and the court action did not The LFP has its own legal personality established in its statutes, decided to move provide the necessary relief to the minority and enjoys autonomy of internal their company’s domicile to Granada, shareholders180. However, after the original organisation, although the articles change its name to Granada 74, but play club moved out to Castelldefels, in August of association and regulations of the their matches in Motril, their actions were 2007, the UE Figueres was re-founded professional leagues are subject to completely legal. This was due to changes after the agreement with the old president approval by the CSD, following a mandatory of domicile or name not being regulated as to keep the club’s original crest and report from the RFEF13. The governing specificities of a SAD. Hence, in this case colours. The new club has been champion body of the LFP is its general assembly, the principle that anything not expressly of the Catalonian third division, thus being where all the clubs are represented. In prohibited is, in fact, allowed was followed. promoted to Catalonian second division at the general assembly the votes of clubs However, a disagreement arose between the end of the 2007/08 season. from the first division count for 1.1, while the LFP and the RFEF, as the RFEF tried to the ones from second division only count ban this move and was therefore attempting 1.3. Government for one. Furthermore, the president of the to exercise a competence that was denied The Spanish government’s role in sport is RFEF can attend the meetings and has a to them by the current legislation. Indeed, interventionist, even though its regulations voice, but no right to vote. The LFP also the law conferred autonomy to the LFP are considered to be complementary to has a delegate commission (elected by the for the management of criteria for the those determined by the autonomous general assembly) as its executive body, acquisition of the license, allowing clubs governing bodies, such as the federations with six representatives from six clubs to compete in the Spanish Championship. and professional leagues19. The importance from each division. The league’s adoption The legal conflict went to the Court of of sport has been outlined in a set of of a code of good governance was one of Arbitration for Sport, which is based in guiding principles on social and economic the first actions performed by the LFP’s Lausanne. The court ruled in favour of the policy, included within the third chapter of current president, Sr. Astiazarán, although LFP and Granada 74 SAD, and against the Title I of the Spanish Constitution, wherein this currently only applies to the LFP itself case presented by the RFEF. Moreover, the article 43.3 states, ‘Public authorities and not to the member clubs. The clubs RFEF was challenging a decision that had will promote health education, physical

%8%#54)6%35--!29 3PAIN education and sport. They will likewise gathering together the football authorities institutions; either the municipality or facilitate the proper utilisation of leisure’20. and all the other organisations who are government of autonomous region where The state exercises its influence on involved in the fight against racism, violence the club is based. These assets must then sport via the CSD at all levels, except and intolerance in the world of sport24. be used for the promotion of sport. where powers are expressly delegated under the Spanish Sports Law. The CSD 2.1.2. Governance Structure is a quasi-autonomous body, associated 2. Structure of Spanish Football The legal structure of members’ with the Ministry of Education and Science, Clubs – Ownership and associations in Spanish football is quite and is governed by a president and Governance25 similar to that seen in the democratic management committee. The president of public institutions, where the articles the CSD is the Secretary of State of Sport Nowadays, football clubs are considered of the members’ association define the is appointed and dismissed by the cabinet, to be private associations, made up terms and conditions for an electoral whereas the management committee of private individuals or legal persons, process. The clubs follow the rule of one is established within the CSD21 and is whose aims are the promotion of one member one vote and elections take place comprised of: representatives from the or more sports and participation in according to different timeframes at each state administration, such as autonomous sports competitions and activities26. club. For example, Barça and Real Madrid communities and local entities; Spanish Spanish sports clubs can be classified hold elections every four years and Athletic sports federations, whose presidency into: elementary sports clubs, which are Club de Bilbao hold them every 5 years. corresponds to the particular president the amateur sports clubs; basic sports The maximum number of consecutive of the CSD; and persons of recognised clubs, which are the so-called members’ terms for the president is two, which is a standing in the world of sport, who are associations and are legally registered as relatively new measure as previously some nominated by the president of the CSD. non-profit associations; and SADs. presidents, like Nuñez at FC Barcelona, Regarding professional football, the All the professional football clubs were served almost 20 years. main competences of the CSD are22: the members’ associations and were of a non- In those clubs registered as members’ establishment and approval of the articles profit nature prior to the 1992-93 season, associations all the members over the age of of association and regulations for the RFEF although many of them were heavily in eighteen with one year’s club membership and LFP; the granting of financial subsidies debt. The implementation of the Sports Act can vote. The electoral procedure requires as appropriate; the assessment of the in 1990 caused most of these members’ the collection of a certain number of official competitions involving professional associations to change into SADs, and signatures, as established in the statutes, clubs; and the power to authorise or deny the following sections will explain how this prior to a nomination being accepted. Some the inscription of SADs in the register of transition occurred. cases of fraud have occurred, but normally sports associations. these are detected before the electoral 2.1. Members Associations process is perverted. Additionally, different · The Fight Against Violence and Racism clubs have different eligibility requirements. 2.1.1. Ownership Structure For instance, Real Madrid requires the One of the Government’s main concerns Football clubs that are structured as candidate to be of Spanish nationality, is the recurring incidents of racism and members’ associations are owned by whereas FC Barcelona, keeping coherence violence in Spanish football, with one their SOCIOS, or members. Their non-profit with its own history (the club was founded common example of racist behaviour in association nature forces the clubs to by a Swiss citizen), only requires a year of stadiums being the mimicking of monkey reinvest any profits, or revenues gained club membership prior to candidature. sounds when a black player from the from commercial activities or the sale of Nowadays, however, only wealthy visiting team touches the ball. While assets, within the same club. The only individuals can afford electoral campaigns, the vast majority of the spectators are clubs that are still members’ associations in even though anybody can theoretically not guilty of this behaviour, their silence Spanish football are FC Barcelona (156,366 become a president. However, the 15% when it happens could be considered as members), Real Madrid (69,000), Athletic de deposit, which is subject to being forfeited complicity. The CSD has adopted a set Bilbao (34,373) and Osasuna (15,016). in the event of mismanagement, can be of measures to prevent and punish such Clubs that are structured as members’ easily obtained by way of a bank loan. actions, and politicians have established associations need to be registered on their The highest decision-making authority a commission for dealing with it, with a respective autonomous region’s register in all the clubs that were, or are, structured result being the establishment of the law of sporting entities, as well as on the as members’ associations, is the Annual against violence and xenophobia in sport. national register of sporting associations. Delegate Assembly (ADA). The ADA is the The AFEPE was invited to express its The members still have a great degree main democratic authority of the club, and thoughts in the Spanish senate when the of control. The board of directors is the board of directors are held accountable bill was being passed through parliament. required to receive authorisation from the to it in front of the club’s members, Additionally, the government considers club’s general assembly upon any sale or although the attendance of delegates at the tackling of this problem to be one of acquisition of property or economic rights the ADAs is normally low (around one in its main missions, and it has provided with a value equal to or greater than 20% ten actually show up). Additionally, any a considerable budget for prevention of the budget, and for any commercial decisions that have a strong bearing on the campaigns that are targeted at, and also agreement with a length that exceeds five life of the club must also be submitted to it, thanks to, the supporters’ clubs. years. Also, in event of liquidation, the i.e. amendments to the statutes, the budget There is also an observatory for articles of any football club structured as and the annual report. The composition of violence, racism and intolerance in sports23, a members’ association27 provide that the ADA differs between clubs, dependent which is chaired by a sports sociologist. the remaining assets – after payment of on the respective club statutes. At FC The observatory aims to be a forum for creditors – must be donated to public Barcelona, for example, the delegates

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 3PAIN (about 2,000) are chosen randomly by a (in conformity with Article 26.1 of this Act) In the second restructuring plan in 1991, computer draw and they are given a limited concerning the periodic information that the club presidents and administrators mandate of 2 years. FC Barcelona also they must forward to the CSD. The clubs reached an agreement with the CSD, has a club senate, which is comprised of that have several professional or amateur through the LFP, which aimed to eliminate the 1,000 longest-standing club members. sports sections have to maintain separate the clubs’ debts. The plan was financed with However, at Real Madrid delegate selection accounts for each one of these. The LFP, the the revenue available to the LFP from football operates as a combination of a computer CSD and, when appropriate, the relevant betting30.This agreement guaranteed the draw and a representative election by autonomous communities, will be able to clubs an annual fixed income of €10.8 million members28. Finally, at Bilbao any member determine the clubs that will be subject to until 1997, regardless of the actual amount who has the support of nine other members an additional audit carried out by auditors collected. In addition, the clubs were can attend the ADA. appointed by the aforementioned entities”. able to defer the payment of debts worth In clubs structured as a members’ approximately €48 million. Furthermore, association, the management board is 2.2. Sports Public Limited Companies the CSD fixed a stock capital issue for each composed of members who do not receive (SADs) individual club, the proceeds of which would financial reward, and who appoint the make it possible to reduce the clubs’ entire club’s paid executive staff. The boards 2.2.1. Ownership Structure debts to almost nothing. The football clubs of members’ associations have two were consequently able to wipe out their distinct tasks: they must act as the official · From Members’ Associations to SADs public debts (roughly €192 million). representatives of the club, and they must Regarding the change of ownership manage the club, setting its business In the 1980s Spanish clubs were facing a status, the CSD regulated the offer of policies and strategies. The decision- critical financial situation. The government shares to the members of each club that making power is concentrated in the board responded in 1985 by attempting to was restructuring to become a SAD, with of directors, even though some issues of implement a restructuring plan (THE PLAN an attempt at respecting the members’ crucial importance have to be approved DESANEAMIENTO), but this strategy did not status. The message from the government by the ADA. For instance, the board has achieve the expected result and the clubs’ was that each member could become a to request confirmation from the following debt continued to grow. In 1990 an attempt shareholder in the resultant SAD. When ADA when new directors are appointed to finally achieve financial stability was a SAD was initially founded, the value of to fill casual vacancies. Decision-making implemented, with a change imposed on individual shares could not exceed €60. tends to be top-down in most clubs that the legal system of professional football via The total value of the shares issued was are members’ associations, and the level of the Sports Act of 1990, which established equal to the negative shareholders’ equity, member involvement, and internal debate, a judicial framework of legal and economic the difference between total assets and is low. However, communication within liability on football administrators and total liabilities. If the difference was positive members’ associations has improved with directors. The Government forced (i.e. the shareholders’ equity was positive) advancements in information technologies. indebted clubs to either become SADs there was no obligation to become a SAD. or be relegated to the semi-professional The trick here was that almost all · The Ombudsman league (second division B). This strategy clubs owned a ground in the city centre opened the way for clubs to become listed with a very low book value, as according The institution of the members’ ombudsman on the stock exchange. to the Spanish GAAP they had to use is found in Osasuna and FC Barcelona. Real As previously mentioned, only four the acquisition price (almost negligible). Madrid may also introduce an ombudsman clubs avoided being transformed into However, if they valued to market prices for if it reforms its statutes. The ombudsman is SADs. Hence, they remained as members’ housing or other use, the value would have independent from the board of directors. associations, which they achieved by been very high and only very few clubs Their goals are the assistance, counselling maintaining a positive net capital between would have been obliged to become SADs. and defence of the members´ rights in their 1986 and 1990, and through their members’ Therefore, the real effect of the relationship with the club. The ombudsman assemblies voting against the structural transformation of the clubs in SADs was that is a club member with recognised prestige change. These clubs were Athletic Bilbao, some wealthy people could acquire very and they are elected for 5 years, with a Barcelona, Osasuna and Real Madrid. All cheap real estate in the city centres. Some maximum mandate of 10 years. They are the other clubs had to become SADs by of them rushed to sell the ground after it proposed by the board of directors, requiring the end of the 1991/1992 season. It is worth was zoned as building land for housing or a supporting vote of three fifths of the ADA. noting that those four clubs that remained office use by the respective city mayors. Their main tasks also include managing the as members’ associations are subject to The process of share subscription was electoral roll, safeguarding the electoral identical obligations as those imposed on the divided in three rounds. In the first round, process, and gathering all the members’ SADs, in particular regarding to the periodic each club member could subscribe to claims that relate to their relationship with reports that they must submit to the CSD29. his/her corresponding number of shares the board. The ombudsman also has to The presidents and boards of directors as per the result of a simple division, explain their activities in an annual report. of SADs were required to guarantee 5% of which was the total declared debt divided The regulation of members’ associations their budget for the purpose of ensuring by the number of members. The second was developed in the additional provisions the liability of the administrators. These round involved offering the remaining of the Spanish Sports Law, jointly with the guarantees would have to be paid by the shares to those members who had already respective associations act: “The member warrantors in the event that their clubs bought in the first round. However, the associations adapted the accountancy had financial losses. Where members’ most important round was the third. The of their professional sports sections to associations were concerned, the required proportion of shares left in the third round the rules that are regulated for SADs, guarantees were stricter; with 15% of the varied between clubs, and the clubs’ board and are subject to the same obligations budget being set by the outgoing board. of directors had the freedom to determine

%8%#54)6%35--!29 3PAIN the subscription process for those divided into shares and voting rights are in stock exchange. The relationship between remaining shares. However, many lawyers accordance with the percentage of shares Spanish football clubs and the stock considered that this process represented held. It is also worth mentioning that there exchange goes back to the 1950s and a deprivation of the members’ economic is the theoretical possibility of sharing 1960s, when Real Madrid and Atlético de and social rights, through obliging them dividends, although they are seldom paid Madrid issued bonds on the Madrid stock to pay for shares to become shareholders in actuality. exchange for the purpose of constructing in the new legal entity31. They argued that SADs need to be registered in the their respective stadiums. According the fairest system would have been to CSD’s Register of SADs, and in the to Cueto (1998), none of those issued distribute shares free to members, and 2EGISTRO-ERCANTIL (government registry of bonds appeared attractive to the investing then subscribe the remaining capital. commercial concerns). SADs, compared public, and the banks that were doing the At some clubs, the supporters were to non-sporting companies, have a very underwriting bought most of them39. not interested in acquiring shares, and in different kind of shareholder, as most of some of these cases the remaining third them are interested in the company as a · Restrictions on the transfer of shares round of shares were subscribed to by sporting, rather than a commercial, entity. municipalities and regional governments The initial offering in the 1990s mostly The CSD established certain regulations to protect the club, thus becoming major influences the current distribution of shares, on the transfer of shares to preserve the shareholders. In other cases, most of the and while the number of shareholders integrity of the competition. remaining shares were subscribed to by is often quite high, their individual wealthy individuals, who usually had a prior participation in the company’s corporate life · SADs and clubs who take part in involvement in the board of directors of the is often not significant. The shares in a SAD professional competitions at the state previous members’ association, with their are normally split into two blocks: a large level may not own or have control - companies sometimes becoming sponsors controlling interest and a widely dispersed directly or indirectly – in any other SAD of the club. Overall, the conversions tended holding amongst the supporters. taking part in the same competition. to concentrate the ownership of these Two percent of the Spanish population · Any individual or legal entity who holds clubs in far fewer hands than before, and are club members or shareholders36. 5% or more of the voting rights in a SAD some clubs, such as Atlético de Madrid There has been no significant change in cannot obtain, directly or indirectly, and Real Betis, had even more problems the amount of people who own shares, voting rights of 5% or more in another fulfilling the new obligations as a result of or who are members of a football club, as SAD that competes within the same their huge debts32. a result of the Spanish Sports Law. The sporting discipline. This compulsory process of chart bellow shows the percentage of the · Finally, no individual or legal entity restructuring from members associations Spanish population who were shareholders may acquire shares in a SAD if such into SADs represented a dramatic change or members of a professional club between acquisition risks altering or jeopardising in the model of ownership structure for 1990 to 2005. the normal course of a competition40. most Spanish professional football clubs. It also explains the current share distribution The Government has so far shown more !REYOUSHAREHOLDER situation, which is due to the existing    interest in preserving the integrity of the ORMEMBERSOCIO right of first refusal33 that benefited those competition, through trying to avoid multi- shareholders who already owned the most Yes 10 8 7 ownership, than in addressing the SAD issue shares. However, some clubs did write a of concentrated power within a few hands. No 90 92 93 provision into their articles of association Additionally, the restructuring into SADs which prohibited the ownership of more 3OURCE#)3/PINION0OLL did not achieve the main aim of reducing than one percent of the shares by one the clubs’ huge, unsustainable debts in the person or entity34. Overall, the entire Seven percent of the population, aged long term. Indeed, since the restructuring process was considered to be the only between 15 to 74 years old, are either some clubs have disappeared, some still available solution for extinguishing the members or shareholders (roughly 2 million maintain huge debts, and some have gone clubs’ debts, although it is now apparent people). The barometer also defines the into administration e.g. Hércules, Logroñés, that this restructuring did not solve the dominant profile of shareholders / members Compostela, Real Oviedo, UD Las Palmas, underlying structural debt problems. as young to middle-aged males who often Sporting de Gijón and Alaves41. As a result, practice sports, and who also have a some supporters have campaigned for · Sports Public Limited Companies (SAD) medium to high level of education37. legal amendments that impose a limit of 5% The process for buying shares in a SAD of shares per individual, which would oblige As previously mentioned, the ownership takes place in several steps. First, a seller the current owners to sell their shares if structures of SADs have some and buyer must make contact with each their holdings exceed this amount. Another particularities as contained in the Sports other and then reach an agreement on the idea is to allow the supporters to elect a Law and its rules of implementation, but potential sale. representative who would have the rights they are subject to the general regime There are no SAD shares traded on the to attend the club board and shareholders’ of Public Limited Companies. They are Spanish public equity markets, even though annual general meetings, and the right corporate bodies, specially created for law permits this38. Aside from complying to speak and vote in the board. Other the field of professional sports, with a with Spanish company law, a SAD also supporters are considering exercising legal framework that is established in the has to fulfil the higher requirements of a right granted under the Spanish Sports Act 1990 (amended by law 50/1998) transparency and financial reporting as Constitution – the so-called “INITIATIVA and the Royal Decree 1251/1999 (further established by the #OMISIÊN .ACIONAL DEL LEGISLATIVA POPULAR”, or popular legislative modified by Royal Decree 1421/2001)35. -ERCADODE6ALORES (CNMV), who are the initiative42. This would involve collecting Their basic principle is that stock capital is national body in charge of supervising the half a million signatures in 6 months, and

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 3PAIN would allow a bill on amending the Sports ENTITIES CAN BE ADMINISTRATORS REGARDLESS in place that controls debts between Law to be taken to parliament. OF WHETHER THEY ARE SHAREHOLDERS 2EMAIN different clubs, which works to preserve EXCLUDED THOSE WHO HAVE BEEN CONVICTED the competitive balance. However, the 2.2. 2. Governance Structure OFSERIOUSINFRACTIONSRELATEDTOTHEüELDOF LFP has also tried to establish a cost The Sociedad anónima DEPORTIVA (SAD) is a SPORT WITHIN THE LAST üVE YEARS !CCORDING control system for surveying the degree of corporate body specifically created for the TOTHE3PORTS!CTTHEONLYCIVILSERVANTSTHAT debt that the clubs hold. This system had field of sport. One of the main objectives of CANNOTBEMEMBERSOFTHEBOARDARETHOSE to be established through an arbitration the Sports Law no. 10/1990 (amended by WHOSE PUBLIC ADMINISTRATION ACTIVITIES ARE agreement, as to avoid normal paths Law 50/1998), and Royal Decree 1251/1999 RELATED TO THE CONTROL AND SUPERVISION OF of jurisdiction it was not established in modified by Royal Decree 1421/2001, 3!$lS4HE ADMINISTRATORS MUST DEPOSIT A the statutes. Due to this, its substance was to establish a regime of legal liability BANKGUARANTEEAMOUNTINGTOATLEASTTO became meaningless as three clubs failed reconciling the public interest present in OFTHETOTALBUDGETOFTHE#LUB4HE#OUNCIL to sign the decisive arbitration clause, and sport activities with the commercial and OF!DMINISTRATIONACTSASAGROUP BUTTHEBY hence it could not be enforced. Carlos del professional features of some areas of LAWSCANMODIFYTHISANDATTRIBUTEPOWERSTO Campo (General Secretary of La Liga) did sport. In this vein, one of the main aims ONEORSEVERALMEMBERS!MONGTHETASKS not want to disclose, for confidentiality for the establishment of the SAD was the OF THE #OUNSEL TO INFORM THE PROFESSIONAL reasons, which clubs were against the hope of restoring equilibrium to the difficult LEAGUE OF CHANGES IN SHAREHOLDINGS OF THE cost control system, although the reason economic situation of many football clubs. 3!$4HEADMINISTRATORSARELIABLEFORACTS behind their reluctance was obvious: they Garcia and Rodriguez state, “although THATARECONTRARYTOTHE,AWANDTHEBY LAWS wished to avoid external binding controls television revenues began to have some OFTHE3!$ BUTTHEYAREALSOLIABLEVIS ÷ VIS on their finances. importance in the clubs’ total revenues, the THE0ROFESSIONAL,EAGUES The CSD requires interim (six monthly) expenses that many clubs incurred to pay for and annual reports, the latter of which stadium improvements, as a consequence !NY PERSON OR LEGAL ENTITY ACQUIRING A include audited accounts. The auditing of the World Football Championship in SIGNIüCANTPARTICIPATIONIN3!$IEOR includes a shareholders’ register for those 1982, as well as other factors, prevented MORE MUST COMMUNICATE THIS FACT TO THE clubs registered as SADs, and these clubs the clubs from keeping within their budgets 3UPREME #OUNCIL OF 3PORTS !NY PERSON must notify the CSD of any changes in their and, in general, Spanish football clubs got WISHINGTOACQUIRESHARESINA3!$WITHTHE share ownership as soon as they are aware further and further into debt … For this RESULTOFOBTAININGVOTINGRIGHTSOFOR of them. All the clubs bar Deportivo de la reason, given the Sports Law of 1990 and MOREMUSTREQUESTTHEAUTHORIZATIONOFTHE Coruña, have followed this legislation. The the Decree of July 15th 1991, the Spanish 3UPREME#OUNCILOF3PORTS President of Deportivo, Augusto Cesar Government obliged professional football Lendoiro, has been investigated by the clubs with losses to become sports stock )N SOME CASES THE ACQUISITION OF SUCH CSD as a result. companies (SADs)”43. SHARES IS FORBIDDEN )N 0ARTICULAR 3!$S However, neither members of a club AND #LUBS PARTICIPATING IN PROFESSIONAL registered as a members’ association, nor k)T WAS TO THIS END THAT THE 3!$ WAS COMPETITIONS AT THE 3TATE LEVEL MAY NOT the shareholders of a SAD, are entitled CREATED!3!$ISACOMMERCIALSOCIEDAD PARTICIPATE DIRECTLY OR INDIRECTLY IN THE to request any action from the League WITHINDEPENDENTLEGALPERSONALITY WHOSE CAPITAL OF ANOTHER 3!$ TAKING PART IN THE against their affiliates as a consequence of PURPOSE IS TO PROMOTE DEVELOP AND COMPETITION NO INDIVIDUAL OR LEGAL ENTITY mismanagement by their respective board PARTICIPATEINPROFESSIONALSPORTEVENTSFOR HOLDING  OR MORE OF THE VOTING RIGHTS of directors. If any member or shareholder ONESINGLECATEGORYOFSPORTEVENT  INA3!$CANOBTAIN DIRECTLYORINDIRECTLY has a claim they have to sue in the civil VOTING RIGHTS OF  OR MORE IN ANOTHER courts, which is a process that involves )NPRINCIPLE ALLCLUBSWISHINGTOPARTICIPATE 3!$ANDNOINDIVIDUALORLEGALENTITYMAY significant delays. IN OFüCIAL PROFESSIONAL CONTESTS AT THE ACQUIRESHARESINA3!$IFSUCHACQUISITION 3TATE LEVEL MUST ADOPT THE FORM OF A 3!$ RISKS ALTERING OR JEOPARDISING THE NORMAL 2.4. Financial Performance 4HERE ARE HOWEVER SOME EXCEPTIONS TO COURSEOFACOMPETITION-OREOVER 3!$S La Liga revenues are dominated by Real THIS OBLIGATION PROFESSIONAL FOOTBALL AND ARE SUBJECT TO SIGNIüCANT ACCOUNTING Madrid and Barcelona, who between BASKETBALLCLUBSACTINGATTHE3TATELEVELMAY OBLIGATIONS INCLUDING THE SUBMISSION OF them account for almost half (48%) of the NOTBEREQUIREDTOADOPTTHISFORMPROVIDED PERIODICAUDITREPORTSl44 total revenues in the 2006/07 and 2005/06 THATTHEIRBALANCESHEETSAREPOSITIVE AND season46. TV deals are sold individually by THE -EMBERSl !SSEMBLIES DO NOT PROVIDE 2.3. Financial Regulation – Licensing clubs and once Serie A returns to collective FORTHEADOPTIONOFTHEFORMOFA3!$ System selling of TV rights in 2010, La Liga will be The Clubs need to obtain a license before the only ‘big five’ European league where )NSUCHCASES THEADOPTIONOFTHEFORMOFA they can compete in the professional broadcast rights are sold individually. 3!$ISNOTCOMPULSORY HOWEVER THECLUBS national championship. The licenses are Deloitte forecast potential scrutiny from REMAIN SUBJECT TO THE SAME OBLIGATIONS AS awarded by the LFP and are subject to European regulators and competition THOSE IMPOSED ON THE 3!$S IN PARTICULAR the observance of financial regulations, authorities on this matter47. WITH RESPECT TO THE PERIODIC REPORTS THAT which proscribe clubs from incurring Of the €168m (15%) increase in La Liga THEY MUST SUBMIT TO THE 3UPREME #OUNCIL debts to its players and employees, other revenue in 2006/07, €151m (90%) was due OF3PORTS4HUS FOREXAMPLE 2EAL-ADRID clubs, or the state45. However, a crucial to broadcast revenue, mainly driven by &# "ARCELONA !TLÀTIC DE "ILBAO AND #LUB aspect of this rule is that it only covers broadcast deals for both Barcelona and !TLÀTICO/SASUNADIDNOTADOPTINTHElSTHE debts incurred to players, employees or Real Madrid, and accounting for 43% 3!$LEGALFORM!STOTHEORGANSOFTHE3!$ the state; bank debt, general commercial of total broadcast revenues reported in THEADMINISTRATIONISENTRUSTEDTOA#OUNCIL debt and personal debt is not covered. La Liga in 2006/0748. The two clubs also OF!DMINISTRATION"OTHINDIVIDUALSANDLEGAL There is an adequate mechanism account for 54% (€231m) of the total

%8%#54)6%35--!29 3PAIN commercial revenue of La Liga. Generally members’ associations. Some clubs have the external image of the country57. On a the competitive market has driven up rights also benefited from “sweetheart” deals different scale, Barcelona is the unofficial values, but legal disputes over who owns with their municipalities on property deals. “ambassador” of Catalonia. Besides the the rights continue49. This enabled Espanyol to leave its historic two big clubs, there are also big local According to Deloitte, Real Madrid inner-city stadium following the sale of rivalries among teams that come from and Barcelona are among the top three its former training ground for housing the same city or region, e.g., Real Betis richest clubs in the world50. However, purposes; or the sale of Real Madrid’s and Sevilla, Athletic de Bilbao and Real this list does not provide the full general “sporting city” on the outskirts of Madrid. Sociedad, Deportivo de la Coruña and financial situation, as these two clubs However, this strategy is not available to Celta de Vigo. represent almost half of the total revenue many clubs. in the 2006/07 season. Indeed, the The level of debt, and the fact that 3.1. Supporters’ Groups aggregate debt of Spanish clubs in 2006 the clubs sell their broadcasting rights Supporters’ clubs are legally considered to was €2.16 billion, which was ten times individually, casts a great level of uncertainty be associations, and they follow the legal the accumulated aggregate debt seen at over Spanish football. Thus, overseas regime as established in the Spanish Law the time when clubs converted to SADs investment in Spanish football is low and of associations of 2002, which has been in the early 1990s. Furthermore, the Spain has so far only attracted two foreign enforceable since 2004. The registration players’ union (!SOCIACION DE FUTBOLISTAS investors, who became the presidents of requirements vary depending on the %SPAďOLES (AFE)) asserts that it received clubs that were registered as SADs. scope of the association. Those that have 161 complaints from players against a a national scope are registered with the total of 19 clubs, in the 2006/07 season, ministry of internal affairs, while those with over an aggregate of €14,718,535 in unpaid 3. Fan Culture a lesser scope are inscribed in the register salaries over that season. Over the same of associations of the relevant autonomous period, complaints against clubs in the k)N3PANISHTHEWORDFORSUPPORTISAüCIÊN community, and are hence bound by the semi-professional third tier amounted to WHICH MEANS LOVE OR AFFECTION 4HIS respective regulations. €4,148,53051. By July 2008, debt-ridden 3PANISH EXPRESSION PERHAPS DIFFERS FROM According to the figures provided clubs in the top two leagues owed their THE%NGLISHTERMkSUPPORTlITSCONNOTATIONS by the FC Barcelona’s supporters’ club players over €38 million according to the AREMOREOVERTLYAFFECTIONATE THOUGHLESS department, the vast majority of members AFE. Levante’s players even threatened ACTIVELYSUPPORTIVEl55 of supporters’ clubs are not members or strike action over unpaid salaries. shareholders of the clubs they support. One reason for the financial situation Spanish football culture can be considered From the 200,000 peñistas, only about of Spanish football clubs is said to be to mirror the broad diversity in Spanish 20,000 (10%) are also members of the club. the collapse of the Spanish property society. Hence, Spanish football culture According to statements from the former market, as construction companies have is influenced by politics and history, and president of the Federation of Peñas in traditionally been the biggest investors in the diversity within football supporters RCD Espanyol, nowadays president of a Spanish clubs52. Overall, six first division reflects different visions of Spain. Support minority shareholders’ association, around teams, 16 sides from the second tier and has an important local component in 45% of shareholders of SADs are also 91 clubs from la Segunda B and la Tercera Spain, with the medium and small cities members of a Peña. were asked by the Spanish Football typically having one football club that acts The management of associations is League to sort our their debts, otherwise as its symbol and represents its flag. This established in their statutes, as long as it they could be relegated automatically by situation explains the existing natural link is consistent with the provisions of the law. at least one division53. between the football clubs and the local ‘The General Assembly of the associated Additionally, the Spanish government / regional populations56. There is also a members is the supreme governing (body). has revealed that Spanish football clubs considerable supporters’ movement for It meets once a year, unless at least 10% owe the country €607 million in back taxes the national / regional teams, specifically of the associates request an additional for the last financial year54. However, it is in Catalonia and the Basque Country, special meeting. The members of the expected that the Inland Revenue will not both of which aim to compete on an General Assembly are required to approve recover any debt and clubs will only pay a international level. Overall, the teams with the association’s actions based on the small amount of what they owe so that they the greatest following tend to be those who principle of majority, or another chosen are able to stay in business. win the most trophies, Real Madrid and FC democratic process. Under the direction of It is becoming apparent that SADs Barcelona, and it is normal for supporters the General Assembly, a representational have used the strategy of administrative from other clubs to have a preference for body must be formed. The members of this receivership to shelter from creditors. This one of the two big teams. Additionally, the body must be associates; their function is has allowed clubs, by way of an agreement recent participation of immigrants and to assume responsibility for the ongoing with those creditors, to reduce the burden women, which was traditionally low, has management and representation of the of debt by as much as 50%. In return, court increased in recent seasons. interests of the association’58. Additionally, appointees run the SAD for a period of five The influence of politics on Spanish if members of the organisational bodies of years. The process of administration can football is distinct when compared to the association receive compensation for be started voluntarily by the club or through most other football-following nations. Real their services then suitable records must be a civil court application by the creditors Madrid is considered to be the “Team of made in the articles of association and the and by shareholders or members if they Spain”, as five consecutive European Cup annual accounting, the latter of which must are individually liable for the debts (e.g. if victories in the 1950/60s put the club, and be approved by the General Assembly. The they guarantee the payment of the credits). Spain, on the European map. Real Madrid Associations’ Act establishes the basic According to the law, the procedure is open recently received an honorific ambassador default rules for the internal administration to all natural or legal persons including of Spain award for their contribution to of associations, which are enforceable if

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 3PAIN the by-laws of any association do not have The organisational structure of all the clubs from having to move to another their own established rules. football clubs includes a department that stadium), and acting as a forum of debate. is responsible for social initiatives including Some of the individuals who established 3.2. Supporters’ Organisations at the the clubs’ relationship with the supporters. them knew each other from internet forums, Clubs The clubs that have the most developed for instance Señales de Humo and Por structures, such as FC Barcelona, have Nuestro Betis, whereas others just met in 3.2.1. The Peñas (supporters’ clubs) integrated this area to the extent that it is the AGA and decided to combine efforts. The supporters collectively organise responsible for representing the football club These associations are composed of themselves under the umbrella of the PEďAS at any ceremonies or events organised by responsible and highly qualified supporters (supporters’ clubs). The naming of peñas the official peñas. The responsibility for this who initially acquired shares during the often includes the name or nickname of is held by a member of the board of directors, transformation process in the early nineties, the relevant club and the region where it is and its members are also appointed by the and also in the following opportunities as a based, while some others are a tribute to a board of directors, with their powers and result of consecutive capital increases. former or current player, the latter requiring duties established within the club statutes. Most of the associations were authorisation from the player in question. The members of this body may, at the established during critical situations and Their clubs officially acknowledges some discretion of the club, attend the meetings they suffered from the mismanagement of of the peñas, while others decide to be of the peñas consultative committee, which the administrators. Those administrators independent from their club. are organised by the Club. dissolved their responsibility for any ‘The informal groups of supporters financial losses by making a reduction of are mainly “social” groups, usually formed 3.2.2. Official Supporters’ Clubs capital followed by a capital increase, the through an Internet site or blog. The Consultative Committee – FC Barcelona so called “OPERACIÊNACORDEÊN” (operation aims of these groups are rather limited in Regulation 9.2. of the Regulations accordion). They were forced to do this by scope: to organize meetings and parties of Governing FC Barcelona Supporters Club, law, but some people involved in the board supporters, to coordinate transportation ‘provides for the creation of a body known of directors used their privileged information to the matches, to purchase signs and as “Official Supporters Clubs Consultative to buy shares for less than the real nominal flags, to create songs and anthems, to Committee” (the “Committee”). value, and in turn the percentage of shares accompany the young divisions of the club, This body is composed of the same owned by minority shareholders decreased. etc. In practice, these groups lack formal number of delegates as there are Zones However, in general terms the distribution personality and rights, and they have no in the different geographical areas. The of shares did not change significantly due legally recognized right of influence in the Committee, upon petition by the Club, to the right of first refusal, which gives the management of the clubs. These informal meets in the offices of FC Barcelona, at current shareholders purchasing preference groups of supporters are an interesting least once every 4 months. The elections for in proportion to the percentage of the shares development because, sometimes, they delegates to the Official Supporters Clubs currently owned when a capital increase are the seed from which grow formal Consultative Committee will be held every takes place. The minority shareholders’ supporters’ structures’59. 4 years unless FC Barcelona considers it association of Sevilla CF were granted the ‘The formally constituted associations opportune to hold them in more frequently. ability to avoid the right of first refusal after of supporters are those that have adopted The central aim of the whole system is going through court. Their argument was the legal form of an association with Regulation 9.2.3, according to which the based on social interest, as following the law distinct legal personality. Depending main task of the Consultative Committee STRICTUSENSUM would damage the minority on their territorial scope of action, these is to promote relations between the Official shareholders and increase the gap between associations are registered either in the Supporters Clubs and deal with their them and the majority shareholders63. National Register of Associations, or in concerns and suggestions, producing Minority shareholders’ associations a Regional one. Although some of these reports, recommendations and proposals could be thought of as potential supporters’ associations have more or less formal links for the Social Area of FC Barcelona. trusts if they changed their articles of to the Clubs that they support, the latter However, the reports, recommendations association to allow supporters who are may not always officially recognize them. and/or proposals of the Consultative not yet shareholders to join them. Such a Furthermore, usually the by-laws of these Committee are studied by FC Barcelona but strategy would make them open and fully associations of fans do not make reference have no binding force’62. representative of the broad social mass to the possibility or aspiration to take part of supporters, but in some cases they in the management of the Club’60. 3.2.3. The Minority Shareholders’ have shown reluctance to let other groups In some cases of peñas of clubs Associations in. Sometimes this has been due to the structured as members’ associations, These groups of shareholders have a high character of their club, which could be taken where the supporters’ club is in the same level of organisation where ownership over from the inside due to the possibility of geographical region as the club, at least issues are concerned, and they also control acquiring shares, and so anybody who was three members of the supporters’ club have the board’s performance. They only exist in not already a shareholder was considered to be club members before they can be clubs that have adopted the legal structure to have no real wish to be one. In cases granted the status of an official supporters’ of an SAD, as in the members’ associations where this situation does not exist and they club. Where the peña is established outside the supporters are members and not are open to all supporters there are still of the country, they generally require one shareholders. The minority shareholders’ certain restrictions. For instance, due to the supporters’ club member to be a member associations were created for many rivalry with the other team of the city, Por of the club. FC Barcelona is establishing a reasons, including the representation of Nuestro Betis does not allow season ticket code of regulation that governs this matter, minority shareholders and season ticket holders or shareholders from Sevilla to join which in turn has further developed its holders, defending the heritage of the clubs their organisation. Some, as Asociación relationship with its supporters’ clubs61. (some of them managed to prevent certain Señales de Humo, do not restrict its

%8%#54)6%35--!29 3PAIN membership to shareholders. According increase their activity is when a club · Asociación Señales de Humo to the articles of association all Atlético undergoes an economic crisis and they supporters can be members. protest to protect the assets of the clubs, This association of Atletico de Madrid, The number of members differs in each for example in many cases preventing the the Asociación Señales de Humo, was association, and it is normally relatively sale of the stadium. established in January 2002. Their main small, although their level of influence may The relationship between the aims (as outlined in their statutes) are to be high thanks to internet forums and proxy associations and their clubs varies. Some defend the patrimony of the club and to votes within the AGA. However, their level of relationships are poor and are played out serve as a forum for information and debate involvement, according to their particular in the legal arena (e.g.: through the courts for fans. They were, and still are, opposed context, does differ between clubs. For – as in the case of Por Nuestro Betis and to the manner in which the Gil family has instance, Bandera Blanca from Albacete is Señales de Humo), whereas others have a been running the then membership- the association that has the most influence stronger relationship through occupying based club since 1987. Jesús Gil became in the management of their club. In fact, a seat on the board (for example APMAE chairman of the SAD in 1992 when Atletico one of their members is now the president of Espanyol). Most of them agree that lack became a Public Limited Company (PLC). of Albacete Balompié, which is currently of transparency is a major issue at their The Spanish High Court later ruled that Gil playing in the second division A, as they clubs, as the board of directors simply acquired the majority of his shares illegally. were able to get the influence of 51% of the fulfil their minimum legal requirements, In 2003, the Spanish High Court found him shares64. It is also worth mentioning that and sometimes they even fail in that. unfit to be involved in any PLC, leading him total book value of the contributed capital None of these organisations receive to resign from the club’s board. Currently is among the lowest in Spanish Football at public funding to finance their activities, the chairman is Enrique Cerezo and the €6.5 million, and these shares are scattered normally operating by levying a fairly CEO is Miguel Ángel Gil. among a huge number of shareholders. low membership fee that allows them As can be seen in the previous table, APMAE of Espanyol have had a seat to finance their activities. Some of them they have a very low percentage of shares, on the board since 2004 even though they have sponsors on their websites, and as the Gil family and their connections still remain independent in their votes65. a few of them have small incomes from own 95%. They are currently waiting for a The evidence for this independence arises basic merchandising. They are extremely court judgement, as they are contesting from their frequent voting against certain interested in talking to Supporters Direct a fraudulent capital increase that could points in the AGMs, as they sometimes UK about how to establish other funding substantially alter the actual share disagree with the board of directors’ sources. distribution. They are also currently fighting proposals on particular issues. The case Most of them produce publications the fraudulent sale of the Vicente Calderon of APMAE at Espanyol is quite different, to spreading their message amongst stadium, which would result in the club as they supported the winning candidate supporters, and all of them have a moving to la Peineta, and which they believe in the 2004 elections to the board of messageboard on their website, with these will cause the club to lose a lot of money. directors. It is worth stressing that FORA frequently updated and quite active. They are receiving help from Supporters both of these candidatures considered Their relationship with the football Direct UK. However, the current distribution the APMAE helpful for the stability of authorities (the LFP and the RFEF) is of shares means that many of the supporters the governance of the SAD. This was almost nonexistent. The only governing of Atletico Madrid do not consider joining despite, as established by the Spanish body that interacts with them is the CSD, the organisation to be worthwhile. The Law of Limited companies, the APMAE’s as the minority shareholders’ associations key to increasing their interest would be percentage of shares being under the often request financial and ownership focusing the association towards building minimum required to obtain a seat in the information from this institution, as it the membership and planning their strategy board of directors due to the proxy votes. jointly manages the register of SADs with to focus on more realistic, short, medium In other clubs where the supporters have the LFP. and long-term objectives. became part of the board of directors, The following table describes a survey, Representatives of Señales de Humo such as Santander, Levante and Valencia, conducted in the context of the feasibility and Supporters Direct UK initially met the opposition from the board caused study, among the minority shareholders’ in London during August 2007, during a the activity of the minority shareholders’ associations of Spanish football clubs66. period that some supporters of the club associations to dramatically decrease, or were aiming to establish a new club, in some cases even disappear. All of these associations follow !REYOUSHAREHOLDEROR 3HARES 3HARES "OARD democratic principles, through elections. -EMBERS &OUNDED MEMBERSOCIO CONTROLLED OWNED 2EP The length of the mandate varies between associations, with a maximum of 5 !0!33EVILLA 100 18% 18% No 1996 years seen in APMAE of Espanyol, and 1 since a minimum of every 2 years at APMAE, !0-!%%SPANYOL 177 3% 1.6% 2001 Sevilla and Señales de Humo of Atletico 2004 15% (was de Madrid. Their main activity takes place !0!2::ARAGOZA 50 3% No 1996 before and during the AGA, as they have 45%) Whole meetings to agree the direction of the "ANDERA"LANCA!LBACETE 10 51% 15% 2005 Board vote prior to the AGA. Some minority shareholders follow a freedom of vote 0OR.UESTO"ETIS 900 4% 1% No 2006 policy, but most of them promote the proxy 3EďALESDE(UMO vote among all the minority shareholders. 200 1.5% 1.5% No 2002 !TLDE-ADRID Another situation where these groups

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 3PAIN using FC United of Manchester (and AFC requests to the CSD for financial associations who are dissatisfied with Wimbledon) as a model. Kevin Rye from information on the club, with an aim of the management of their clubs. These Supporters Direct UK attended an event in assessing whether the club fulfils their groups aim to challenge the existing May 2008 organised with others supporters’ accountancy obligations as established board, and seek to enhance the quality of groups, called Gaudeamus, where a group in article 10 of the SAD regulations, also internal democracy. Some of them exist for of journalists responsible for covering news evaluating the club’s relationships with relatively short periods of time, where they on Atletico de Madrid, took questions about other companies owned by shareholders fail to win elections. the way that the media perceives the club of Betis. They have required an external and its supporters. The topic that generated audit too, which is to be made by the · Elefant Blau the most discussion was the media’s lack of government register of commercial criticism of the mismanagement of the club concerns and will be paid for by the SAD. The most famous example is %LEFANT"LAU by the Gil family. (Blue Elephant) at FC Barcelona, which was The case work conducted so far · !DMINISTRATIVE  ,EGAL: Here they are organised to oppose the .UďISMO abuses has stressed the need to establish campaigning for the definition of the that occurred in the late 1990s (Nuñez was a more appropriate strategy for the rights of the minority shareholders, the president of FC Barcelona for 20 years). organisation, through employing a and how they can take any appropriate Elefant Blau was led by the now president strategic communications plan, to increase legal action against those individuals of FC Barcelona, Joan Laporta. membership and to provide opportunities at the club who may be guilty of any The group had the following to say for those members to become more mismanagement. about the idea of a Europe-wide movement active in the life of the organisation. The of supporters being established: importance of simplicity and clarity in their · 0OLITICAL: They have established contact publications was also, underlined. Another with the relevant public authorities, with k,l%LEFANT"LAUWILLBEPLEASEDTODEVELOP area that appears to need addressing is an aim of improving the club’s image, LINKSWITHSISTERSUPPORTERSlASSOCIATIONSIN the fact that most of the work is performed and with other supporters’ groups, OTHER%UROPEANCOUNTRIES WHEREBUSINESS by a few individuals, mainly carried out by to help integrate them into the wider INTERESTSHAVETHREATENEDTHESPECIALNATURE its president. Like most organisations of movement. They have done this through OF THEIR CLUBS 4HERE IS A GROWING FEELING this type, they rely on volunteers, and so media campaigns promoting their work. AMONGFANSACROSS%UROPETHATCOLLECTIVE resources are tight. In the past, they have also run campaigns ACTION NEEDS TO BE TAKEN TO PROTECT THE against the sale of the stadium. GAMEWELOVE4HUS ,l%LEFANT"LAUWOULD · Por Nuestro Betis PROPOSE THE CREATION OF A %UROPEAN · ,EGAL: They have campaigned for a !SSOCIATION OF &OOTBALL 3UPPORTERS THAT Por Nuestro Betis (PNB) was established requirement of a cancellation of contracts WOULDACTASALOBBYGROUPTODEFENDTHE on the 13th of April 2007, with the main aim that in their view damaged the interests INTERESTSOFSUPPORTERS ANDTHEIRCLUBSAND of defending the club’s interests against of the club, and for a register of the Betis COMMUNITIES 4HIS LOBBY WOULD SEEK TO the abuses of its current main owner. The shareholders. They have demanded a right INCLUDEASMANYSUPPORTERSlGROUPSACROSS members of this new association knew to call an Extraordinary General Meeting. %UROPEASPOSSIBLE ANDWOULDESTABLISHA each other prior to its establishment, as Additionally, campaigns among season CENTRALSECRETARIATANDHEADQUARTERS WITH they were already active members on tickets holders have been held to prevent BRANCHES IN EVERY COUNTRY ,l%LEFANT "LAU internet forums of Betis supporters (Beticos season ticket monies from being diverted BELIEVESTHATONEOFTHEüRSTCAMPAIGNSOF por el Villamarin and other associations). to companies owned by the existing board SUCHANORGANISATIONSHOULDBETOPREPARE PNB invited Supporters Direct UK to the of directors, instead of the club499. A MANIFESTO ADDRESSED TO THE %UROPEAN centenary of Real Betis Balompié in Sevilla #OMMISSION PROPOSING THE ABOVE in August 2007, to organise a collaborative The owner of Real Betis Balompié has also MENTIONED INDEPENDENT %UROPEAN WIDE relationship and to receive advice from been using the club’s official channels REGULATOROFPROFESSIONALFOOTBALLl68 Supporters Direct. The main aim of this of communication – in particular a radio meeting was to find out how Supporters station – to insult those who oppose him. As Laporta is now the president, Direct UK has established supporters’ Hence, the last AGA was the most intense unsatisfied “socis” (club members) have trusts and increased supporters’ in the club’s history. At this meeting the established other organisations, such as involvement in the running of their clubs in police had to intervene, following the “!SOCIACIÊ PER LA $EFENSA DELS $RETS DE order to advance the same ideas at Betis. club’s owner inviting 200 Betis ultras to the LES3OCIESI3OCISDEL&#"ARCELONA”, and Since this meeting, PNB has launched meeting, who subsequently threatened the “ćMNIUM"LAUGRANA”69. a successful campaign for gathering as representatives of PNB. The PNB tried to Recently club members have launched many proxy votes as possible so they demand transparency and accountability a censure motion against the management can reach the required threshold of 5 %, from the board of directors without success, of the club, as vote of no confidence that allowing them a more coherent collective and they were not even allowed the right sought to oust Laporta and his board of voice. Achieving this threshold entitles to speak. They ensured that they invited directors. Barcelona’s club statutes allow them to request an external audit, allowing a notary to witness the goings on at the for a motion of censure to be officially them to check for possible irregularities in meeting, and they intend to take the board put in place if five percent of the club’s the management of the club. to court for not respecting their rights as members who qualify as voters – adults The actions started by this group have established in the articles of association. who have been members for more than one four different strands: year – sign a petition. The club has roughly 3.2.4. Fan Initiatives 117,000 members with voting rights, · &INANCIAL: In an effort to increase There are also groups of individuals in meaning the petition needed to gather the transparency they have made several those clubs structured as members’ signatures of around 6,000 members70.

%8%#54)6%35--!29 3PAIN The vote on the censure motion against of fair play (known in Spanish as JUEGO LFP, which annually contributes €12,000 Laporta’s presidency took place on 6 July ,IMPIO) among the stakeholders in Spanish for travelling and organisation expenses. 2008 and won 60.6 per cent of almost football (players, coaches, referees, RFEF Contributions from the CSD are linked to 40.000 votes cast71. However, the motion and the LFP). the annual meetings where they are related failed to achieve the two thirds majority AFEPE currently includes 38 federations to the fight against racism and violence. necessary to force a new election. of peñas, which cover all the clubs from The Spanish FA also contributes in meeting Followed by the resignation of eight the first and second divisions, with the the costs for venues for their seminars. directors from the board, Laporta has exception of Real Sociedad, Osasuna and In regards to international links, stated that his future is a matter for the Numancia. It is the most representative they belong to the European %URO &AN assembly meeting in August to decide upon. supporters’ organisation as it represents organisation. They are also a member of roughly 600 peñas72. the European study group against violence · Plataforma Blanca por el Real Madrid The AFEPE’s democratic structure is and racism, and attended conferences laid out in its articles. The president and in Budapest organised by the Council An association with similar aims, called the general secretary are elected every of Europe, and the one held by the EU in “0LATAFORMA "LANCA POR EL 2EAL -ADRID”, four years by the presidents of the peñas Brussels in November 2007. They also was established at Real Madrid last year. federations from each club, who have each invited representatives of supporters’ It also questions its board’s financial been elected by their respective peñas. organisations from Belgium (FAN coach) management competency, due to the Each peñas federation has one vote, and Denmark to their last annual congress, huge increase in debt seen over the recent regardless of their size. held on the 29 June 2007 in Santander, and years. It wants to preserve the club’s image The board of directors holds meetings were also invited to meetings with French and assets, while acting as a forum for the every three months. They also hold closed- supporters’ groups in Toulouse in the discussion of the club’s management. door seminars every six months in the spring of 2007. RFEF’s headquarters, which are attended In summary, AFEPE represent Spanish · Athletic Eup! by all the stakeholders involved in Spanish supporters at a national and international football (LFP, RFEF, CSD, AFE, trade level, work to isolate violent groups, Supporters of Athletic de Bilbao established union of coaches, the media, referees, the promote friendship across the game, and a group known as “!THLETIC%UP!”, and was police, and the observatory of violence and fair play. established with the goal of bringing the xenophobia in sport). The meetings with voice of the base supporters (SOCIODECALLE), the governing bodies of Spanish football 3.1.2. Federación de Accionistas y who were tired of the unclear institutional authorities, where topics relating to security Socios del Fútbol Españo l– FASFE and sportive situation, to the board of measures at away games are discussed, (The Federation of Shareholders and directors. They contested the elections with occur at least once every three months. Members of Spanish Football Clubs) two major policies: to open Lezama (the They have taken part in several social FASFE is a new national Spanish Athletic de Bilbao academy) to people from responsibility campaigns, which were held football supporters’ organisation. This outside the normal strict recruiting criteria, by the governing bodies. AFEPE also acted association has completely different where only Basque players are eligible; and as a promoter of a CSD campaign for Fair aims and objectives from AFEPE, being supported the idea of wearing a sponsor on Play, which took place in a football industry more focused on ownership issues, the club’s shirt. congress called Planet Fútbol, in Madrid, and transparency and democracy in Overall, these types of associations and at the same time they also received the management of clubs. The minority gather together unsatisfied and responsible some funds from the CSD for the purpose shareholders’ associations at six supporters and act as a forum for debate, of organising some of their annual events professional football clubs founded in good will towards the club they support. in Madrid and Santander. Although their the association. Currently the affiliated annual congress is not normally financed groups are Por Nuestro Betis, Beticos 3.3. National Supporters’ Groups by the CSD, these funds were provided por el Villamarín, APA Sevilla CF, APARZ Until recently, the only supporters’ due to the fact that the congresses were Zaragoza CF, APAR Real Sociedad and considered by the football authorities to be related to the fight against violence and Señales de Humo from Atlético Madrid73. a legitimate representative of supporters racism. AFEPE also has an agreement As part of its aim to represent as was AFEPE, also known as !üCIONES with the RFEF, whereby they promote the many supporters as possible nationally, 5NIDAS. They also are recognised by the support of the Spanish national football FASFE has established contact with other government. team. In one national team match, held similar groups with the aim of growing the in Salamanca, the AFEPE produced and membership, with five clubs in a transition 3.3.1. Aficiones Unidas: Asociación distributed 30,000 leaflets concerning phase of becoming members of FASFE: de Federaciones de Peñas de Clubes the prevention of violence and racism in Omnium Blaugrana at Barcelona, APMAE de Fútbol – AFEPE (Association of football. They have also distributed more Espanyol, SAM Levante, Bandera Blanca Federations of Supporters’ Clubs of than 2 million pamphlets as part of the LFP’s from Albacete and APA Valencia Football Clubs) social responsibility campaigns, which have The following groups have shown Supporters’ clubs are organised on three included campaigns against violence and their interest to join: Plataforma Blanca main levels: individual supporters get xenophobia, promoting reading, and against Real Madrid, Superacción Deportivo de la together in peñas, and above them all the violence against women. At same time they Coruña and Asoc Dep. Vicente Calderón AFEPE acts as an umbrella organisation. have promoted their own initiatives, such – Federación de peñas Atlético de Madrid74. The main goals of the AFEPE are the as the day of the referee, which advocates FASFE wants to use the supporters’ representation of supporters, the respect for match officials. trust model developed in the UK, promotion of friendship among supporters Their main source of funds comes from and their main aims are to represent from different clubs, and the expansion an agreement with the foundation of the and safeguard the interests of the

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 3PAIN (minority) supporter-shareholders to the Federation, particularly using the internet Supporters Direct is mentioned on the football authorities (on the national and and electronic communication as a tool; groups website76. international level), to public institutions legal services; expertise and advice (i.e. the state, the autonomous regions on finances in order assist in building a and municipalities), and to political picture of the financial state of clubs; finally 4. Suggestions parties and other relevant bodies. They FASFE aims to provide commercial and also aim to provide consultative services fundraising ideas and support to generate The current financial situation of Spanish to the CSD and other bodies on issues income for the federation and its members. clubs and the development of supporter- that relate to the interests of minority As previously mentioned, FASFE aims shareholder groups, and the subsequent supporters-shareholders of SADs. All the to instigate a change in the legal structures establishment of FASFE means that there members promote long-term democratic of Spanish football clubs, with the objective is a favourable environment for a similar involvement in clubs, whether their clubs of transforming the SADs back into development to Supporters Direct and are SADs or members’ associations. They members’ associations, or at least offering the supporters’ trust in the UK. However, wish to operate in a constructive and alternatives to the structures currently the interest that Spanish supporters’ proactive manner, and not just be seen established under the Spanish Sports clubs have in getting involved with the as an opposition to the establishment. Act. In addition, they want to establish the management of clubs differs between However, all of them consider that the current level of compliance of the existing clubs, as the context and culture of the conversion of members’ associations into laws within Spanish professional football. different regions varies substantially. SADs was a huge mistake, as the controls To achieve their long-term aim they There is tangible evidence that many that the Spanish Sports Act aimed to have started to lobby the three national supporters’ groups are committed to implement have not worked properly, political parties: Partido Socialista Obrero establishing something similar to the particularly given that the level of debt has Español (PSOE), Partido Popular (PP), and trust movement in Spain. The types of increased significantly. Izquierda Unida (IU). The MP from IU, Mr. assistance that they would require would FASFE acts as a forum for the Llamazares, questioned the government be of two major types: Firstly, practical exchange of knowledge and experience in parliament as a result of a meeting help. Due to the lack of experience existing amongst members, with an aim of with FASFE, enquiring about potential in Spain when compared to the level of helping other supporters to set up similar governmental strategies for changing the development that Supporters Direct has organisations (in the way that SD does). SAD model. in the UK, they can foresee situations and At the same time they wish to strengthen On January 29 2008, the launch of the problems that have already occurred the use of football as a tool for integration new federation took place in front of the there, extrapolating them to the Spanish and anti-discrimination and as a source media – both national and subsequently experience. Secondly, a Supporters Direct of understanding among supporters. The the local press. The media coverage Europe could assist in developing a more new association established the following was quite significant, with two national public role for FASFE and their constituent short-term goals: broadcasters and several regional ones groups. Spanish public opinion frequently covering the launch. Words of support from takes ideas more seriously if those ideas 4HEY AIM TO REMOVE THE CURRENT RIGHT OF Supporters Direct UK in the form of a letter have consistent support from Europe. EXISTINGSHAREHOLDERSlTOHAVEüRSTREFUSAL were also communicated. On May 13 2008, Therefore strong European links could lead ONNEWSHARESINTHEEVENTOFANEWSHARE FASFE had another press conference in to those supporters and institutions that are ISSUE 4HEY ARE ALSO SEEKING FOR SEATS TO Zaragoza, with Supporters Direct UK in currently sceptical joining the movement. BE AVAILABLE TO MINORITY SHAREHOLDERSl attendance but not taking part. Before There is an urgency to increase the ASSOCIATIONS ON THE BOARD OF DIRECTORS the press conference, Kevin Rye from influence of supporters and to set up OF 3!$S WHICH IS THE REASONING BEHIND Supporters Direct UK was able to listen proper controls on clubs’ debts, as the ADOPTING LEGAL MODELS 4HEY ALSO AIM TO and speak with the member associations majority of the boards of directors at clubs REDUCE THE THRESHOLD REQUIRED IN ORDER about their experiences, the issues they appear to only think and act according to FOR SHAREHOLDERS TO ATTEND !'!S IN THE have to contend with and the assistance very short-term goals, leading serious 3!$ &INALLY THEY WANT TO CREATE THE ROLE and support that Supporters Direct might financial problems and in some cases OF OMBUDSMAN FOR MINOR SHAREHOLDERS be able to provide. Despite the cultural bankruptcy. The emergence of FASFE and ELECTED DEMOCRATICALLY BY ONE MEMBER differences and unique environments the development of their constituent groups OF ONE VOTE INDEPENDENT OF THE NUMBER each group is faced with, there are many provides a positive way for supporters OF SHARES HELD BY EACH SHAREHOLDER 4HE similarities with the problems faced by groups to be established with (and for OMBUDSMANWOULDHAVEUNFETTEREDACCESS supporters of clubs in the UK. One of the existing groups to adopt) democratic and TO RELEVANT INFORMATION REQUIRED TO CARRY main areas of interest for FASFE was in transparent structures. This approach OUT THE ROLE 5LTIMATELY &!3&% IS AIMING how and from what source funding is results in the focus being on long-term TO ACHIEVE THE TRANSFORMATION OF CLUBS sourced. During the meeting, FASFE also goals and wider reform of clubs and the BACK INTO MEMBERSl ASSOCIATIONS DOING was able to express its solidarity with a industry, not simply the establishment THIS BY PROMOTING AND LEADING A DEBATE similar organisation recently established of initiatives with a limited shelf-life, TO CONVINCE THE PUBLIC AUTHORITIES AND in Portugal, who had recently launched a campaigning on a short-term, single issue LEGISLATORSTOCOMEUPWITHTHELEGISLATIVE campaign against a similar proposal to the such as a change in the existing directors ROUTESTOACHIEVETHIS75 English Premier League’s aborted ‘Game at clubs for new ones that could easily 39’ proposal, where it was being proposed make the same mistakes. FASFE provides its member associations that Portuguese league fixtures be played with various services, providing in former Portuguese colonies. 4.1. The Adequate Legal Structure for communication/media relations support Supporters Direct UK are already Supporters’ Groups to help spread the philosophy of the advising FASFE and the collaboration with The legal form chosen by supporters’

%8%#54)6%35--!29 3PAIN groups who are actively involved in management) the influence of these of other associations are interested in their club’s governance and ownership procedures in the management of football joining the group. To help them gain more structures is that of a non-profit association. clubs remains modest. Directors of the representation they have also established The membership policies vary, and where football clubs are not legally obliged to contact with initiatives in those clubs which the club is a SAD, the membership of execute, or even take into consideration, are structured as a members’ association, minority shareholders associations is often the concerns, reports, recommendations or including at Barcelona and Real Madrid. restricted to shareholders only. However, proposals of members’ associations. One The long-term objective of FASFE is to to ensure the crucial principle of openness possibility for improving this situation might return to the previous Spanish professional of membership that supporters’ trusts be to further design the clubs’ statutes to sports model, where all clubs were operate under, the groups should be open create formally binding obligations on the members’ associations. To achieve this they to all supporters, thus broadening the part of the managing board with respect to have started to lobby political parties, with ability of the group to be able to claim to the rights of the members, and particularly the objective of making amendments to the represent the broader fanbase. To achieve financial reporting. current legislation. These efforts crystallised this, amendments to some of the articles when the parliament was questioned of association in groups with restrictive 4.3. Representatives on the Board and about the current obsolete model of SADs. membership policies would have to be Measures to Increase Attendance at Another possible avenue for achieving their made. There should be no restrictions, save the AGA goal could be through making use of the any commonly legal standards, in joining. An effective measure for increasing the popular legislative initiative, established The same principles of openness in attendance of AGAs at SADs could be to by the Spanish constitution, by collecting regards of membership should also apply establish a limit on the concentration of about half a million signatures and then to supporters’ groups at clubs that are shares or by increasing the number of seats sending a proposal to parliament. members’ associations. Although obviously on the board of directors. The outcome One of the desired outcomes of their membership cannot be determined by of both of these measures would be that parliamentary lobbying would be the a person owning a shareholding, any wider participation would be possible. sourcing of monies as a funding stream for restrictions based outside of the same However this would not be guaranteed, as the association. This would give FASFE the commonly accepted legal standards (as simply increasing the number of directors ability to be able to provide more services to mentioned above) should be removed and does not guarantee a broader and more supporter-shareholder groups. Supporters the group accessible to all supporters. reflective or representative (of the fanbase) Direct UK are already advising FASFE, and Providing the same tax benefits board of directors. There is also a danger a Supporters Direct Europe could continue granted to non-profit bodies that meet the that such an action could cause a decrease to provide advice and guidance to them. ‘public utility’ test would free up resources, in the boards’ level of effectiveness, The most relevant assistance a allowing the group to focus on their core therefore any change such as this needs to Supporters Direct Europe would provide activities of building membership, growing be carefully considered in order to maintain is to help increase awareness among their shareholding and acquiring board the desirable balance so that the club can supporters about the importance of their representation at the club. This could have be democratic, but that it can also operate involvement in the long term sustainability the beneficial effect of helping to achieve effectively. of their clubs. Supporters Direct has also a higher degree of participation amongst In principle, however, representation been asked to help increase supporters’ supporters, and members. Some steps in on the board could help to increase influence in the running of their clubs by this direction have already been made by transparency. Improved governance developing appropriate club statutes. the representatives of some of the minority structures could help to pave the way for Overall, a Supporters Direct Europe shareholders’ associations through FASFE members to restructure their clubs should develop a best practice guide in contacting the 3ECRETARIODE%STADOPARAEL as members associations. cooperation with the groups in regards to $EPORTE, the Secretary of State for Sport, A measure for increasing the attendance ownership and governance structures. This but so far there has been no response. at the AGA of members’ associations would guide should not just assist supporters Where supporters’ groups at members’ be changing the cycle of these meetings groups but also clubs with accounting associations are concerned, all the to ensure attendance is both enabled issues, strategic planning, campaigning above applies except the references to and maximised. This would be done by and other matters of concern. Legal advice shareholding. Where ‘representation’ is amending the statutes and this changing provided by local expertise is considered concerned, members’ clubs operate under the actual assembly dates. to be crucial. a democratic structure, and so the ability Additionally, there is a need where for supporters’ to gain election to the board both members associations and SADs 4.5. Implementation of the Rule of Law is already a reality. However there may be are concerned to ensure that AGAs and One of the main problems for minority ways – such as that at Barcelona where other relevant meetings of a members’ shareholder groups seems to be the state’s the OSCCC is concerned – that the group association are adequately publicised. limited use of its control mechanisms. wishes to take a more official place in the Currently, the state’s control focuses on structures at the club, and so this could be 4.4. Federación de Accionistas y Socios avoiding multi-ownership. Additionally, even an aim for some. del Fútbol Español – FASFE if supporters-shareholders get organised The Federation of Shareholders and and use the legal company law or criminal 4.2. Governance Guidelines via Statutes Members of Spanish Football Clubs law instruments to control the board the Although the structure of members FASFE does appear to have similar delays in Spanish courts provoke the associations’ guarantees, for example, objectives to those held by Supporters groups being actually helpless. Hence, it is transparency and democratic management, Direct in the UK. It is currently composed necessary to increase the implementation from a legal point of view (besides the of six minority shareholders’ associations, of the existing rule of law, thereby taking a fan initiatives which influence the clubs’ but it is growing quite fast and a number step from theory to practice.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 3PAIN 4.6. Football Authorities promoting better governance is not such There are not currently many ways that a leap of faith, and the work already done supporters can make their voice heard by by a number of these groups (at Betis for the football authorities. Currently a great example) provides substantial evidence deal of interaction between the two groups that such groups are able to pursue a occurs through anti-racist and anti-violence responsible and progressive agenda. initiatives. This means that relationships Having a route to discuss such issues with are already established, and therefore one of the key stakeholder groups in the incorporating of the FASFE agenda of game can only benefit both groups.

1 § 7.2 Spanish Sports Act of 1990. 30 Garcia, J. and Rodriguez, P., ‘The Financial Structure of Football in Spain’, 2 § 2 of the Spanish Constitution 1978. European Sport Quarterly 3, Vol. 3, No. 4,2003, pp. 253-269. 3 § 148.19 of the Spanish Constitution. 31 Selva, L. M., ‘Las Sociedades Anónimas’, 1999. 4 Data taken from www.worldpress.com: Spain a profile, 2007. 32 Sanchez, I.,’15 años de S.A.D.’, Marca.com, 2007. 5 GPD expressed in PPS (purchasing power standards). European 33 The right of first refusal gives proportional preference to share buyers commission. Eurostat 2006. depending on the nº of shares currently owned, which goes in the favour of 6 Albert-Roulhac, C. ‘Corporate governance in Europe: what’s the outlook?’, those shareholders with a higher number of shares. Heidrick & Struggles Study 2005, pp. 30-31. 34 This was the case of Deportivo de la Coruña, but recently they amended 7 http://www.bolsamadrid.es/ing/contenido.asp?menu=3&enlace=/ing/ this rule to attract new investors. mercados/acciones/accind1_1.htm 35 Swiss Institute of Comparative Law, 2008, p. 318. 8 Albert-Roulhac, 2005, p. 30. 36 Survey CES, Centro de estudios sociologicos (center of sociologycal 9 Albert-Roulhac, 2005, p. 30. studies), 2006. 10 Survey published by CIS (Centre of Sociological Research) Estudio nº 2.705. 37 Survey Centro de estudios sociologicos 2006. 11 § 7.2 Spanish Sports Act of 1990. 38 Act 50/1998 and §9 Real Decreto 1251/1999. 12 § 2.1 RFEF Statutes. 39 Fernández , L. Escudero, E. and Rodeiro, D., ‘Financiación de entidades 13 § 2.b of the Spanish Sports Act. deportivas en el mercado bursátil: Factores Influyentes en la salida a bolsa 14 §§ 46, 47 and 48 of the statutes of LFP. de los clubes de futbol y su posterior evolución’. Compostela University, 15 Interview with Carlos del Campo, General Secretary of LFP, Madrid, 4 2002 pp.1-18, p.5. October 2008. 40 §22, Spanish Sports Act. 16 LFP, ‘Informe sobre la viabilidad y procedimiento a seguir para el cambio 41 Interview with Mr. C. del Campo, GS of LFP, Madrid, December 2007. de domicilio de una S.A.D. emitido por la Liga Nacional de Fútbol 42 § 87.3 of the Spanish Constitution, developed by an Organic Act of 1983, Profesional (Report on the feasibility and procedure to be followed to amended in 2006. change the domicile of a S.A.D. issued by the LFP)’, Madrid, June 2007. 43 Garcia and Rodriguez 2003, pp. 253-269. 17 Aguilar, A. Interview of the lawyer of the LFP, Juan de Dios Crespo, iusport. 44 Swiss Institute of Comparative Law. 2008, pp, 318-320. com, 26th August 2007. 45 § 49.7 LFP statutes. 18 For further information pertaining to the change of domicile of Mi apuesta. 46 Deloitte, Annual Review of Football Finance 2008, p. 13. com, see Delgado, M., Brief comment about the change of domice of Mi 47 Deloitte 2008, p. 17. apuesta Figueres to Mi apuesta Castelldefels, website derecho deportivo 48 La Liga, together with the German Bundesliga, reported the largest on line, www.ddel.com, 2007. increase in broadcast revenue in 2007/07, up by more than €150m. 19 Alises, J. M., ‘The European sports charter questionnaire’, Committee for Deloitte 2008, pp. 13, 16. Development of Sports, Council of Europe, Spain, 29 March 2006. p. 5. 49 Deloitte 2008, p. 16. 20 Preamble Spanish Sports Act 1990. 50 Deloitte, Annual Review of Football Finance 2007, p. 19. 21 §10, Spanish Sports Act 1990. 51 Pita, X. ‘El fútbol español debe casi 360.000 millones de pesetas’, www. 22 §8, Spanish Sports Act 1990. xabierpita.es, 20 August 2006. 23 Information provided from the website of the CSD (Spanish Supreme 52 http://www.sueddeutsche.de/,ra9m1/finanzen/artikel/894/186306/; Sports Council) : www.csd.mec.es. Soccer Investor, 30 July 2008. 24 Intern Congress of AFEPE, Madrid, 6 October 2008. 53 http://www.goal.com/en-US/Articolo.aspx?ContenutoId=797296. 25 For the analysis of ownership and governance structures of Spanish 54 http://www.11freunde.de/geschichtsstunde/ football clubs, and to a lower degree of the legal structures of supporters 19668?PHPSESSID=72fdcfb304b5e491d3553c9a68d0c902. groups, we have made extensive use of the Swiss Institute of Comparative 55 Barajas, A. and Crolley, L., ‘A model to explain economic support in Law, ‘Comparative Study of the Legal Structures of Football Clubs and Spanish football’, University of Vigo, 2005 , p.5. Supporters’ Organisations in 45 Jurisdictions’, Volume II, Lausanne, 14 56 Barajas, A. and Urrutia, I., ‘Economic impact of support in Spanish March 2008, pp. 1-436. professional football’. International Journal of Sports Marketing and 26 § 13 Spanish Sports Act 1990. Sponsorship, April 2007, pp. 272-279, p. 7. 27 According with the §7 K and §18 E of LO Asociaciones 1/200, 22 March 57 Marca.com, 11 October 2007. (Spanish Associations Act) the Articles of association shall define the 58 Swiss Institute of Comparative Law, 2008, p. 327. destiny of the assets, in the event of liquidation, without distorting their aim 59 Swiss Institute of Comparative Law 2008, pp. 320. of non profit association. 60 Swiss Institute of Comparative Law 2008, pp. 320-321. 28 Real Madrid’s Fan initiative, called Plataforma Blanca, has recently sued 61 http://www.fcbarcelona.com/web/catala/penyes/serveis/documentacio/ the club for processing irregularities in the delegate elections. regulations_eng_v3.pdf. 29 Swiss Institute of Comparative Law, 2008, pp. 1-436, p. 319. 62 Swiss Institute of Comparative Law, 2008, pp. 324-325.

%8%#54)6%35--!29 3PAIN

63 For an extended history of the activity of supporters defending the 71 Soccer Investor, 11 and 14 July 2008. independence of Sevilla CF, see http://www.forosevillista.com/Textos/ 72 Ppt. presentation of AFEPE, Zaragoza, 3 November 2006. Anexolibro.doc. 73 The secretary of the new association is José Luis Sánchez Ayuso from 64 Interview with J. L. Galiacho, member of Plataforma Blanca (minority Señales de Humo, while the current president is José Ángel Zalba, who shareholders’ association of Albacete Balonpié), Madrid, December 2007. is also the president of the minority shareholders’ association of Real 65 Interview with J. Ramio, President of APMAE and Board member of RCD Zaragoza. He is a former president of Real Zaragoza for two different Español, Barcelona, December 2007. periods of officer: seasons 1971-1978 and 1988-1992, is a patron of 66 Other minority shareholders’ associations that could be potentially the Foundation of the LFP, was a member of the Finance Committee interesting are: Asociación Accionistas Albiazules of Deportivo Alavés, of the LFP from 1991 to 1993 and was also president of the Organising SuperAcción of Real Club Deportivo de La Coruña, Asociación de Committee of the 1982 World Cup in Spain. He has vast experience of pequeños accionistas del Levante (APAL) of Levante Unión Deportiva, the football industry, and as the president of Zaragoza he oversaw the Asociación Espíritu 2003 of Real Oviedo, Plataforma Racinguista Valencia transformation of the club from a members’ associations to SAD. The rest Club de Fútbol of Racing de Santander, and Asociación de pequeños of the constituent members of FASFE’s board of directors are José Luis accionistas del Valencia C.F. (APAVCF). Sánchez Ayuso (Señales de Humo, Atlético Madrid), Camilo Puerto (Betis), 67 Information taken from the website of PNB. Mr. Galiacho (Albacete), and Francisco López (Sevilla CF). Information 68 Edited transcripts of a speech given by Joan Laporta, member at that provided by José Luis Sánchez Ayuso (Señales de Humo, Athletico time of the now defunct Fan initiative called %LEFANT"LAU, at a conference Madrid), Director of FASFE. on ‘The Governance and Regulation of Professional Football’ at Birkbeck 74 Information provided by José Luis Sánchez Ayuso (Señales de Humo, College, University of London, 8 July 1999. Athletico Madrid), Director of FASFE. 69 These groups appear genuinely interested in joining the recently created 75 Press Note issued by FASFE communication department, 29 January 2008. Federation of Shareholders and Members of Spanish football (FASFE), 76 “FASFE (…) colabora con organizaciones internacionales de aficionados indeed a representative from attended the FASFE meeting held on May the como Supporters’ Direct“, http://www.fasfe.org/. 13th 2008 in Zaragoza. 70 http://www.fcbarcelonablog.com/index.php/2008/05/13/barcelona- members-request-censure-motion.

References

AFEPE, power point presentation, Zaragoza 2006. Garcia, J. and Rodriguez, P.,’ The Financial Structure of Football in Spain’, %UROPEAN 3PORT 1UARTERLY , Vol. 3, No. 4, 2003, pp. Aguilar, A. Interview to the lawyer of the LFP, Juan de Dios Crespo, 253-269. iusport.com, 26th August 2007. Gomez, S. Pazo, M. Caracteristicas de un club de fútbol Albert-Roulhac, C. ‘Corporate governance in Europe: what’s the profesional de elite, IESE Business School universidad de outlook?’, Heidrick & Struggles Study 2005, pp. 30-31. Navarrra, 2007, pp. 1-17.

Alises, J. M., ‘The European sports charter questionnaire’, Gonzalez- Espejo, P. ‘Reflexiones entorno al sistema de Committee for Development of Sports,#OUNCILOF%UROPE, Spain, franquicias de la Real Federación Española de Futbol y de la Liga 29 March 2006. Nacional de Fútbol Profesional’, Uria , 2007.

Barajas, A. and Urrutia, I. ‘Economic impact of support in Spanish Liga de Fútbol Profesional, Annual Report 2006. professional football’, )NTERNATIONAL *OURNAL OF 3PORTS -ARKETING AND3PONSORSHIP (Spanish & Latino Special Edition), Vol. 8, No 3, Liga de Fútbol Profesional, ‘Informe sobre la viabilidad y April 2007, pp 272-279. procedimiento a seguir para el cambio de domicilio de una SAD emitido por la Liga Nacional de Fútbol Profesional’ (Rapport of the Delgado, M. de P. ‘Breve comentario del cambio de domicilio de feasibility and procedure to be followed to change the domicile of mi apuesta figueres a mi apuesta Castelldefels’ (Brief comment a SAD issued by the LFP), Madrid, June 2007. about the change of domicile of Mi apuesta Figueres to Mi apuesta Castelldefels), website derecho deportivo on line, www. Pita, X. ‘El fútbol español debe casi 360.000 millones de pesetas’ , ddel.com, 2007. www.xabierpita.es, 20 August 2006.

Deloitte, ‘Football Money League – The reign of Spain’, !NNUAL Sanchez,I.,’15 años de SAD’, Marca.com, 2007. 2EVIEWOF&OOTBALL&INANCE, May 2007. Swiss Institute of Comparative Law, ‘Comparative Study of the Legal Deloitte, Annual Report of Football Finance, May 2008. Structures of Football Clubs and Supporters’ Organisations in 45 Jurisdictions’, Volume II, Lausanne, 14 March 2008, pp. 1-436. Fernández, L. Escudero, E. and Rodeiro, D., ‘Financiación de entidades deportivas en el mercado bursátil: Factores Influyentes Selva, L.M., ‘Las Sociedades Anonimas’, 1999. en la salida a bolsa de los clubes de futbol y su posterior evolución’. Compostela University, 2002 pp.1-18.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? "p!DDITIONAL2EPORTS

Austria1 members of the clubs they support. The the IVW to hold talks, but the negotiations influence of supporters varies and depends broke off and the suspicion of the 1. Ownership Structures of among other things on the structure of the supporters was that the whole procedure Austrian Football Clubs football club. Austrian legislation does had only been started to portray the IVW in not prevent these supporters’ clubs from public as troublemakers. Until 1999 all Austrian football clubs had to taking any corporate or associative form. The club returned on 7th of October 2005 be constituted as registered associations. As members usually form a large group they SV Austria Salzburg under the leadership of However, the Austrian Football Association have an influence in the decision-making a collective of idealists, with the support of (ÖFB) changed its statutes and now they process through the members meeting and selfless players and the vocal support and allow participation in the "UNDESLIGA might also influence clubs constituted as visual presence of up to 2000 fans. The by clubs constituted as associations or companies limited by shares. Compared to first step was completed as the team were capital companies. The clubs were able German legislation, in Austria it is easier to promoted as champions of the Austrian 7th consequently to choose between these acquire shares in a football club where it is division and recently, Austria Salzburg have different types of corporate entities; some constituted as company limited by shares (or been promoted to the Austrian 5th division opted to adopt the capital company, with, where it has an element of such an entity). as champions of the Erste Klasse Nord, the some choosing to outsource only the Austrian 6th division. business of professional football, and Austria Salzburg After almost three years since the some kept the structure of an association. On the 6th April 2005 Red Bull took “divorce” the club has some 2100 members, To date, no football club has floated on control of Salzburg Sport AG and the 35 fan clubs and 12 teams. However, the the stock exchange. However despite Austria Salzburg football club2. Despite public have not been quick to embrace the the choices of legal structure available, several protests organised by the fans club, and the media tend to describe the all football clubs have to keep the status the new owner broke with the traditional supporters of the club as hooligans, with of associations as the members of the deep purple and white club colours and general isolation and financial risks adding "UNDESLIGA remain contemporaneously replaced them with a new FC Red Bull kit to a challenging environment for the young members of the regional leagues, which in red, blue and silver. The management administration. In order to cope with these is only granted to clubs being non-profit also changed the date of foundation of the demanding circumstances, the club’s associations. According to the licensing club to 2005 and ignoring the club’s history business plan focuses on risk management. rules, a capital company can only be from its true date of foundation in 1933 until A permanent dialogue with fans, round granted a license for the "UNDESLIGA if its the takeover, although the Austrian F.A. tables with security representatives and parent-association holds the majority of insisted this be changed immediately. public government and campaigns on fan its shares. According to licensing regulations, culture and should help to improve the In many cases those clubs outsourcing specifically the laws on legal succession, clubs image. the economic business of professional the identity and history of a club has to be football, the capital companies took over maintained or the club forfeit its license to 3. Adequate Legal Structure of only marketing functions. It has to be noted, play in the Bundesliga – in essence if it had Supporters Clubs however, that contrary to the situation in not reversed the decision to change the Germany, the statutes of the ÖFB and the club’s founding date the club would have In Austria supporters’ clubs are mostly "UNDESLIGA do not provide for any additional to have begun life in the bottom division in independent and not formally integrated in restrictions on football capital companies the country. Ultimately however it became the club itself, however, its members may compared to “normal” companies. Via clear to supporters that Red Bull Salzburg be personally involved as actual members its statutes the ÖFB has the right to take saw itself as a completely new entity, with of the club. Supporters’ clubs themselves measures to prevent one legal entity from SV Austria Salzburg having served merely are either general (civil law) partnerships, influencing the governance, administration as the means of obtaining the license to or in case of groups exceeding seven and/or sporting performances of more than play in Bundesliga. members, they can form associations once one club participating in the ,IGA. This rule is In reaction to these developments, they have formalised their relationship present to ensure the integrity of the football on the 30th June 2005, a large group of through statutes. clubs and competitions’. supporters, fan clubs and sympathisers The participation in the decision- launched the Violett-Weiss Initiative making process of football clubs depends 2. Fan Culture (IVW), aimed at promoting the history and on the structure of the club. However, traditions of SV Austria Salzburg, although where supporters are members of the Supporters’ Clubs within the new Red Bull ‘rebranded’ club, they can influence decisions through Football supporters are usually organised environment. However the more the new general assembly. Where clubs are in supporters’ clubs structured as non- team failed to perform the more press structured as companies limited by shares, economic (non-profit) associations. The coverage was given to the so-called ‘club supporters may theoretically equally gain members of supporters’ clubs are often also colours conflict’. Red Bull finally invited influence by becoming shareholders and

%8%#54)6%35--!29 acquiring influence, for example on the have to do this in order to avoid bankruptcy, 2. Fan Culture election of the club’s executive boards while the financially stable clubs can remain etc. If the legal structure of a club permits as associations or try to find a new owner. Supporters Groups any essential participation of third parties, Hajduk Split, is one of the several England was the birthplace of the supporters may be able to act in the form top-flight clubs that have amassed debts Supporters Trust movement beginning of organised bodies. However, if the main since Croatia became independent from in 1992 at Northampton Town FC. Since common purpose of a supporters’ club Yugoslavia in 1991. the establishment of Supporters Direct in is the acquisition of shares in a club, the Not more than 25 per cent of Hajduk’s 2000, there has been a huge increase, with legal structures that the supporters’ club base capital can be sold to one shareholder 104 trusts in English football, including are permitted to adopt might be limited to without approval of the commission for 75% of the clubs in the top four divisions. those available for associations pursuing professional clubs. Some shares will be 60% of those have shares in the club economic objectives. Since economic offered to players, while the rest will be ranging from the 13 clubs who are the associations can only exist when they have offered to supporters. majority owners of the club, to trusts with been granted through a state concession, token shareholdings at present. 40% have one imaginable structure could be that of a 3. Adequate Legal Structure of a presence on the Board of Directors. cooperative. Supporters Clubs In addition to clubs owned by a supporters trust in the professional tiers, Croatia Supporters’ groups use informal legal there has also been a phenomenon of structures, but in order to seek influence clubs being started by supporters using 1. Ownership Structures of in the decision-making processes at a trust as the holding company. The most Croatian Football Clubs the club they should create joint stock famous of these are AFC Wimbledon, companies with a board of directors formed by fans after Wimbledon FC On a non-governmental level there are and a supervisory board, which would was moved to Milton Keynes, and FC different sports organisations. There are allow them to cooperate with other joint United of Manchester, formed by fans no legal limitations imposed on sports stock companies, as the most common of Manchester United unhappy with the organisations, and founders may use any legal form for professional football takeover of the club by the Glazer family in available legal structure. Football clubs take clubs. Supporters could also adopt the 2005. Both of these play in the high sub- the form of either limited-liability companies structure of associations governed by professional tiers. or joint stock companies, established statutes. However associations are less There are also several clubs formed by according to the Croatian Commercial effective in influencing other organisations. fans after the original club was liquidated Companies Act. Nevertheless, the administrative and for financial mismanagement, notably financial burdens are considerably AFC Telford United and Scarborough 2. Fan Culture less than for commercial (joint stock) Athletic in the sub-professional tiers. companies. Another possibility is the Supporters Groups structure of the Croatian foundation, which 3. Adequate Legal Structure of In general supporters’ groups use informal renders beneficial services to the general Supporters Clubs legal structures. However, some groups public and to all clients under identical take the form of non-profit associations, terms and conditions. The profit of a The Industrial and Provident Society were but do not require any other information foundation may not be used for the benefit developed in England and are used in order regarding their registration. According to of its founders, members of its bodies or to make the process of registration easier, the Croatian Associations Act, citizens employees and must serve to promote the simpler and cheaper. may establish associations, societies, and generally beneficial services for which the other civic associations. The rights and Foundation was established. Greece duties of members of associations are governed by the association’s statutes, England 1. Ownership Structures of and these statutes also provide the name of Greek Football Clubs the association, its location, its objectives/ 1. Ownership Structures of aims, its governing bodies/structures and English Football Clubs Sports clubs in Greece are structured in authorised representatives (and information three levels: the athlitiko somatio (sport regarding these), and provisions regarding The vast majority of clubs in the highest association) at the first level, the ATHLITIKI its organisational structure. levels of English football are structured ENOSI (sport union) at the second level, as companies limited by shares. There and the ATHLITIKI OMOSPONDIA (sport Hajduk Split is one company limited by guarantee federation) at the third level. Football clubs in Croatia mainly take the playing in the 4th league (Dagenham and In general clubs operating in amateur form of joint stock companies. In 2008, Redbridge FC) and four clubs in the 3rd sports have to have the structure however, Hadjuk Split will have become and 4th leagues are majority-owned by of non-profit associations, while in the first club to be turned into a company a Supporters Trust, including the world’s professional sports the legal structures limited by shares, offering some of oldest professional club, Notts County FC. of a corporation and a cooperative are those to supporters3. Very similar to the At one stage, over 20 clubs were floated imposed by law. establishment of SADs in Spain, according on UK stock markets, but recent years to a new sports bill on the regulation of the have seen that trend reverse, and there are legal and financial aspects of football, all now only 8 clubs quoted. clubs with significant accumulated debts will

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? 2. Fan Culture association of AEK Athens Football Club Republic of Ireland with the aim of turning AEK Athens FC Supporters Groups into a publicly owned club inspired by the 1. Ownership Structures of Irish Law 2725/1999 deals in Article 41 B with Supporters Trust model in England and Football Clubs “the constitution, function and supervision other European clubs. Today the group has of supporters associations” (3INDESMOS some 1000 members. Irish football club structures are similar to üLATHLON-SF). An SF of an ATHLITIKOSOMATIO Enosis 1924 aims to express the those found in England and Scotland. The (sport association) or of an !!% (sport collective conscience of AEK supporters majority all of the football clubs playing in the corporation) is a union of at least 20 persons and promote a thoughtful approach to the Irish Premier League and in the First Division pursuing the support or encouragement of problems of the club and Greek football in are incorporated as public companies either the ATHLITIKOSOMATIO or the !!% and general5. The group has sued the previous limited by shares or by guarantee. officially recognised by them. The SF has owners of AEK Athens FC for the way they the legal form of a non-profit association ran the club, leaving it with more than €100 2. Supporters Groups and as such, it has an independent legal million of debts and ‘want to give a voice personality (can hold rights and assume to the “thinking” football fan, who wishes Many Irish clubs have supporters who are responsibilities), administrative organs for a credible league’. organised in clubs, which are unincorporated (the board of directors, the assembly of associations as a matter of law. That is the members, the audit committee and the 3. Adequate Legal Structures for apparently true of the highly vocal and media disciplinary council) and a PATRIMONIUM. Supporters Groups visible Irish Football Supporters Association. The SF must foster and encourage the principles of “fair game” and the spirit of Currently a draft law is being discussed, Supporters Trusts sport. All SF are supervised by the Ministry which, if enacted, will prohibit the There are currently five supporters’ trusts at of Culture-General Secretariat of Sports. establishment of supporters’ clubs as clubs in the Eircom League in the Republic independent legal entities in the legal form of Ireland – Athlone Town, Derry City, Lesxi Filon Ari of non-profit associations and will introduce Dundalk, Galway United and Sligo Rovers. In 2004 Aris FC was in financial difficulties the Friends’ Club, an association without a The supporters trust movement has and with the help of Super 3 – the biggest separate legal personality. grown organically. However, there is a clear fan club at Aris – the shares in the club need for a more co-ordinated approach to were bought by Aris AC, an organisation Northern Ireland developing the trust movement in Ireland. responsible for all the non-professional There are therefore plans to hold a public sports teams of Aris. Aris AC has more than 1. Ownership Structures of meeting for trusts in Ireland in the Autumn 22 teams in different sports from swimming Northern Irish Football Clubs of 2008 to discuss a possible way forward. to basketball, and also for people with A Supporters Direct Europe could move disabilities, with more than 2000 athletes. Northern Irish football club structures the Trust movement in Ireland quite quickly ‘Lesxi Filon ARI’ or ‘Aris Members Club’ are similar to those found in England and given the base that is already established. (AMC) (Λέσχη Φίλων Άρη) was formed Scotland and are incorporated as public in January 2006, and in summer 2007 a companies limited by shares or by guarantee. The Bit o’ Red Supporters Trust – new board and president were elected. Sligo Rovers According to an article submitted to the 2. Supporters Trusts The Bit o’ Red Supporters Trust were Supporters Direct magazine in June 2007 the first to be established, in 20057. They – the current board of Aris FC was willing There are two supporters’ trusts in utilised the Supporters Direct model rules to give the shares over that they have to Northern Ireland, at Glentoran and Derry to register as an industrial & provident AMC, meaning that when this happens, City. Derry City play in the Eircom League society with the Irish Registrar of friendly AMC will be the biggest shareholder with and are covered in the section on the societies. more than 84% of the shares (by the time of Republic of Ireland. this article the first step towards had been The Independent Supporters Trust of completed, and Lesxi Filon ARI had legally Glentoran Community Trust Athlone Town (ISTAT) acquired the voting rights on behalf of the The Glentoran Community Trust is the only The Trust was formed in April 2008 and is in then current Board)’4 . supporters trust in the Irish League and the process of registering as an industrial & At this stage Supporters Direct are is registered as an industrial & provident provident society8. awaiting further contact to confirm that this society6. The Trust was formed in 2007 and transaction took place, and that the club is has since managed to become influential Derry City Supporters Trust now in the control of AMC. within the governance of the club and has The Derry City Supporters Trust was According to the plan each member undertaken a number of ground-breaking launched in March 2008 and is in the will have the right to vote in the board community initiatives in Belfast. process of registering as an industrial elections for president as well as to run as & provident society9. The club plays in a candidate. 3. Adequate Legal Structure of the Eircom League under the auspices Supporters Direct has to date had Supporters Clubs of the FAI although the club is located in some contact with the group, which now Northern Ireland. has more than 2,000 members. The Industrial and Provident Society is already used in Northern Ireland, and a Dundalk FC Trust and Galway United Enosis 1924 set of model rules have been registered Supporters Trust Enosis 1924 (Union 1924) was created by Supporters Direct in order to make the Whilst describing themselves as a trust, in 2003 as a non-profit supporters’ process of registration easier and cheaper. and inspired by the example of the trust

%8%#54)6%35--!29 movement in the UK, neither are registered by issuing shares and registering the club in following Supporters Direct and the as industrial & provident societies. However, the stock exchange. However, the incomes German model of fan projects. The group it is quite active10. of the club and the corporate body must be promotes supporters representation on Whilst describing itself as a trust, devoted to the professional, economic and the boards of their clubs, supporters rights and inspired by the example of the trust sporting success of the club. Furthermore, and fan culture in general; assisting the movement in the UK, the Galway United the board of directors of a corporate body authorities with the fight against violence Supporters Trust, whilst having been owning or managing a club, shall require and racism in sport and to encourage and established for a number of years is not the participation of a “representative of the strengthen the relationships between the registered as an industrial & provident community”, whose role is to observe that clubs and their communities. society11. However, it is quite active. the club/corporate body complies with Israfans has sought help from IFA’s regulations and corporate governance Supporters Direct in advising groups 3. Adequate Legal Structure of rules. To do this, the representative of the on forming responsible organisations to Supporters Clubs community must have access to all the become actively involved in the governance relevant documentation. of their clubs. They also expect valuable Irish corporate structures share many information from the feasibility study similarities with those in the UK, and the 2. Fan Culture especially about the legal structure of Industrial and Provident Society form is Israeli football clubs. most suitable here, and is already being Supporters Groups used by some supporters’ groups. The existing supporters’ clubs are Ticket Prices constituted by informal groups of In a survey conducted among all supports Israel supporters promoting classic supporters groups in the Israeli first division, club issues like the colours of the club, supporters named the high prices of the 1. Ownership Structures of travel, meetings and anti-violence. In tickets as one of the main reasons for low Israeli Football Clubs practice, the groups lack formal personality attendance. Israfans produced a policy and rights and hence do not have a legally paper on ticket pricing, which presented IFA’s (Irsraeli Football Association) recognised right of influence over the to all clubs in the Israeli first division and Regulations Concerning the Transfer management of clubs. to the Israeli football association. As a of Rights in Football Clubs (RCTRFC), In an intermediate decision recently consequence a pilot for reduced ticket define football clubs either as non-profit handed down in pending litigation12, the prices for all the games of Bnei Yehuda associations (!MUTOT) or as non-profit District Court of Tel-Aviv recognised that Tel Aviv throughout season 2007/8 was companies. the applicants, supporters of a football initiated, resulting in an unprecedented Generally, the IFA’s regulations club, may be considered as “persons success. If the club would have made less allow corporate bodies (either business concerned” in the club, having an interest money from ticketing than before, the IFA companies or non-profit associations) to that the club will be correctly managed. would have paid the difference. However, acquire ownership or management rights The Court allowed the applicants to have ultimately the club made more money of clubs under certain conditions. For access to documentation that the corporate with reduced ticket prices than with more example the application will be rejected if body managing the club presented in its expensive ones. the corporate body, or its owner or director main evidence. However, in Israel there is no was convicted of a serious crime in the last current practice of football club supporters Ž 3UPPORTERlS#ENSUS five years. Essentially the transfer of rights associating under a formally recognised With regards to the poor relationship of ownership or control without the IFA’s corporative or similar structure. between supporters and the management authorisation has no force. Recently the IFA has recommended of the clubs, Israfans asked supporters’ Whenever there has been a transfer of the implementation of a fan liaison officer clubs to conduct supporters’ census within ownership or managing rights on behalf modelled along the German model of their ranks. These censuses are planned of a corporate body, all the economic Fanbeautragte. However, to the best of our to become the foundation for umbrella and business activities of the club are knowledge these recommendations have supporters’ organisations, whose elected centralised by the corporate body. The not been taken any further yet. supporters will serve as representatives corporate body must be administrated when dealing with the management of according to the accounting principles Israfans their clubs. accepted by IFA. The RCTRFC also Israfans was launched in 2007 as a reaction establishes a minimum capital for corporate to empty terraces, poor communication Ž 0OLICING bodies owning or managing clubs. Where with the police, which often resulted in In an attempt to improve the relationship the IFA withdraws its authorisation, the violence, and a strong sense of alienation between police and supporters, Israfans corporate body is obliged to sell its rights between the fans and the management of have established a list of suggestions in the club within a given period of time. In the clubs they support. Israfans represents emphasising solutions to the problems case of non compliance, the IFA nominates 22 supporter clubs and fan projects in Israel, arising. This plan has been presented to a special committee in charge of selling it. most of them belonging to teams at the first the interoffice committee that deals with According to IFA regulations nothing two divisions. The group is independent and sport related violence, in which Israfans is a prevents a business (corporate) body owning aims to serve as a permanent framework for permanent member, as well as in the media. or managing a club in order to distribute all supporters’ clubs and has a constructive profits, provided that such distribution relationship with IFA. Ž 3UPPORTERSl$ELEGATION is done in respect of the conditions fixed Their main issues cover ticket pricing, In order to promote fan culture in Israel, in IFA’s regulations. According to the policing and strengthening supporters’ Israfans organises exchanges with RCTRFC, corporate bodies may raise funds clubs. Israfans assists supporters clubs supporters’ groups in Europe13. In seminars

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? the groups discuss issues around how to !MUTOT are governed by a board of However, in practice it will not be fight violence in sports, supporters’ rights, directors, which must act in the best easy to implement any of these options policing and different ways of involvement interest of the association, in the framework as they usually require the provision in the decision-making processes at the of their objectives and in accordance with of bank guarantees and investment clubs they support. the articles of association. Directors can capital (something that not all groups be removed by a vote of a general meeting of supporters may be ready or in a Hapoel Katamon Football Club at any time. Members can vote at the position to provide), and are subjected general meeting. to the competitive circumstances and Hapoel Katamon Football Club is owned The !MUTOT may be financed either by fluctuations of the market, whereby the and managed by its fans. The club public funds, by income generated by the percentage of shares needed in order to was created by supporters of Hapoel association itself (such as member fees, attain a position of influence in a club (or Jerusalem, who were dissatisfied about the income from assets or payments made by in a company managing a club) may be too way their club was run. Hapoel Katamon members of the public), or by donations high, too costly, or simply not be for sale. Football Club is named after the Jerusalem made by individuals, commercial entities According to the Swiss Institute of neighborhood of Katamon, where Hapoel or foundations. Comparative Law, the only effective Jerusalem had a stadium. solution that could be envisaged is that When Hapoel Jerusalem was relegated CPBs – Companies for the Benefit of legislation (either State legislation or IFA’s from the top to the third division, fans the Public Regulations) could impose on clubs and/or could not see a future for the club in the Supporters’ groups could take the legal the bodies managing clubs the obligation hands of the current owners, who they held form of CBPs, as “sports” is recognised to reserve a place for representatives of responsible for the poor sporting as well as one of the public objectives. According the supporters in the decision-making as financial performance of the club. In to the RCTRFC application process, structures of the clubs, or to give to reaction to these developments supporters a CBP wishing to acquire rights in a them another kind of influence over the started to raise NIS 500,000 to form a club has to provide certain information management. new team. More than 500 supporters to the IFA. Furthermore, CBPs are purchased a NIS 1,000 stake in the team subjected to serious restrictions and Portugal and businessmen provided additional controls, especially a prohibition against funds. To date the club has about 700 making profits and the supervision and 1. Ownership Structures of members who pay 1,000 shekels a year. responsibilities of administrators and Portuguese Football Clubs directors. CBPs must be registered in a 3. Adequate Legal Structure for special register book, thereby becoming In the past, sports clubs were mostly Supporters Groups accessible to the public. CBPs are also structured as non-profit associations obliged to report on their activities, namely with a separate legal personality, and The Institute of Comparative Law found by filing an annual financial statement, an with the primary aim of promoting sports that the legal structures best adapted to annual director’s report and a report on activities. However, the evolution of the advancement of supporters’ influence changes in the membership of the board professional sports – especially with in the management of football clubs are or audit committee. respect to professionalism and economic the Israeli !MUTOT (associations) and the The transfer of shares of a CBP is contingencies – meant a need for more so-called “Companies for the Benefit subject to judicial authorisation, unless it is defined club structures. Since 1997 of the Public”. However, in practice, carried out in exchange for a “tiny amount football clubs have been able to adopt Israeli supporters would find it financially of money”. This may be a disadvantage the structure of Sport Companies (SAD), difficult to establish such enterprises and with respect to the Amutot, because it defined in private law as collective to equip them for the task of acquiring may open the door to the accumulation persons constituted as SOCIEDADES significant shareholdings in football clubs of shares. The shares of CBPs cannot ANÊNIMAS, whose purpose is to participate or in the associations or companies which be inherited or seized and are not part of in professional sporting contests. control them. the assets of a shareholder that may be Portuguese law does not impose on clubs divided among his creditors in the case of the obligation to adopt the form of Sport Amutot – Non-profit Associations personal bankruptcy. A CBP can merge Companies, but for those football clubs not According to the RCTRFC application only with another CBP and provided it adopting the form of Sport Companies and process, !MUTOT, which wishes to acquire obtains judicial authorisation. remaining non-profit associations, the law rights in a club, has to register properly and established a special regime (especially all its members have to be registered in the Influence over Club Management related to budget and account procedures, association’s books. Membership of an The Swiss Institute of Comparative the responsibility of (business) managers, !MUTOT is personal, non-transferable and Law identifies two ways for !MUTOT or and guarantees to be furnished). not subject to succession. Also non-profit CBP founded by supporters to gain associations are subjected to a regime of formal influence in the management 2. Fan Culture transparency, their articles of association of a football club. First, by acquiring must be registered and their accounts shares in the club itself and second, in Fan culture in Portugal is similar to that controlled by a special auditing committee. cases where a business or a non-profit in Italy: almost every club has an Ultra In this last respect, the books of the !MUTOT company has acquired partial ownership group (or more than one), with the Ultras must be permanently accessible to the of management rights in a club, the receiving direct support from the clubs, directors, the auditing committee and to supporters’ !MUTOT or CBP could try to either financial, logistical or both. the accountants. A detailed balance-sheet purchase a sufficient percentage of the As far as the attitude of the police has to be prepared annually. shares of that controlling entity. is concerned they are viewed as fairly

%8%#54)6%35--!29 negative/aggressive towards supporters14. groups. Positive discussions have already of whom must be registered with a full This has created some dissatisfaction taken place between representatives of description in the books which helps to within the Ultra groups, and their members AAS and those of Association Señales de prevent violence. Also, if associations are, more and more, following the trend of Humo of Spain over a possible ‘Iberican’ obtained recognition as entities of public English/British ‘casuals’. seminar in 2009, as there is some utility, they would be entitled to certain tax The only real interaction between similarity in the issues faced by both sets advantages. supporters and clubs is at Ultra level, and of supporters. Supporters Direct has there is no culture of supporters’ groups been involved in these discussions, and Sweden being concerned with governance issues, will provide assistance in establishing any as in Germany for example, or the UK future framework for an event. 1. Ownership Structure of through the work of Supporters Direct. It will be important that with any Swedish Football Clubs Supporters do not feel listened to, event such as this that other groups of and are feeling less and less close to their supporters are able to attend any event, Members of the 2IKSIDROTTSFÍRBUNDET (RF) clubs, predominantly due to ticket prices as broadening the numbers – both of have to be non-profit associations and in and game scheduling. individuals and groups – with an interest addition to the association legislation, the in this is critical for the progression of any sports clubs have developed a practice Associação de Adeptos Sportinguistas proactive supporters’ groups. under the auspices of RF and its statutes Supporters of Sporting Club of Portugal and norms. These soft laws, together with (often mistakenly referred to as ‘Sporting 3.2. Broadening the skills base of case law from the Swedish Supreme Court Lisbon’) have now established Associação Associação de Adeptos Sportinguistas and certain special rules regulate the non- de Adeptos Sportinguistas (AAS), a to attract those outside the group profit sporting associations. supporters’ association seeking to At the moment, as the AAS is attached to However, with the increasing represent members and supporters of Sporting the appeal to the wider fanbase commercialisation in the 1990s and the Sporting (and to encourage lapsed fans to and groups within Portuguese football desire to facilitate profit-making from return), and gain influence at the club. On a may be difficult. However it is too early to external sources, companies limited by wider level, the association sees its role as a consider establishing a national group; shares, especially developed for sports group capable of bringing the views of fans AAS can be a useful agent for publicising ()DROTTSAKTIEBOLAGET (IdrottsAB)), can also of clubs across Portugal to the public eye. the need for supporters to become become qualified members of the Swedish The Law 16/2004 – established for the involved, and they will need support and football leagues. Similar to the German purposes of fighting against violence in nurturing from a Supporters Direct Europe 50+1 rule, football clubs may be operated in sports – states that, ‘the promoters of a - and similarly from other groups in Europe, a limited company but the rights to compete sports event may support exclusively those particularly Spain. can only be given to the IdrottsAB if the organised groups of supporters that are granting association has the majority of the constituted and registered as associations’. 3.3. Adequate legal Structure for votes at the annual meeting, i.e. controls The members register must also be Supporters Groups more than 50 % of the votes. Added to this, updated annually and be deposited with As minority shareholders of sport the IdrottsAB must have as its purpose, the the National Council Against Violence in companies supporters could influence operation of sport activities, and this should Sports. 15 The AAS is not legally registered the management of the club through a correspond to at least 75% of the activity of under the Law which was established shareholding. For example the statutes of the company limited by shares. Today there mainly to collect data about Ultra groups the company may provide that a minority are 10-15 IDROTTSFÍRENINGAR in Sweden that and identify trouble-makers. The AAS of shareholders representing at least have their sport activities in an IdrottsAB, is also not being financed by the club in 10% of the capital that voted against while most Swedish football clubs still any form but is open to sponsorships for the nomination of the board of directors remain member associations, 100 per cent special events. may have the right to appoint at least owned by their members. Only AIK from one director. The director elected by the Stockholm has traded a minor share of the 3. Suggestions minority shareholders would take the place club on the stock exchange and Hammarby of the elected director of the board who from Stockholm has sold 49% to AEG Currently, the structure of Portuguese clubs received the fewest votes in the election Sweden. Djurgården from Stockholm has is a mixture between partial supporter- (in companies whose shares are traded sold part of the club to interested members. ownership and private involvement. Fan on the Stock Exchange, the former rule Recently the >50%-rule has come culture would appear to be quite closely is compulsory). Furthermore, supporters under pressure and will be discussed on related to the Spanish experience, given that shareholders representing 10% of the the next meeting of the Swedish Sports there is little between either the traditional capital may request the exclusion of a Federation in 2011. As Ice Hockey clubs supporters’ groups and the Ultras. A director for just cause (JUSTACAUSA), even intend to set up a NHL like structure, it positive development is that of Associação if no General Meeting was called to deal is expected that the rule will probably de Adeptos Sportinguistas, and it has with the issue. However, these advantages disappear. The chairman of the Swedish sought to broaden its work to campaign on only benefit minority shareholders and not Football Association is in favour of the wider issues in Portuguese football. external associations of supporters. models in the English Premier League and The associations’ structure offers some has said it would be beneficial for Swedish 3.1. Linking with other groups within advantages to supporters wishing to have football if the rule was removed. There is and outside of Portugal an influence in the running of their club, very little coverage in the media regarding One of the most effective ways of such as a relatively easy establishment the potential change in the ownership supporting nascent groups is to enable of such an institution, and the exact structures of Swedish football clubs and them access to a wider network of similar identification of its members, each one what this could mean in the long-term.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? With regards to the reaction from the supporters. MFF Support hope that SFSU clubs, the board of Malmö FF for example MFF Support and other Supporter will be able to contribute to a more positive is not interested in incorporating the club Groups fan culture in Sweden and represent into a company, while other Swedish MFF Support is an ‘official’ Malmö FF supporters in dialogues with the government football clubs are gradually embracing supporters’ association open to everyone and the Swedish Football Association. the culture of this model, arguing that who is willing to sign up to its constitution. the tax regulations for membership MFF Support was founded in 1992 and has 3. Adequate Legal Structure for associations are too vague and that it is of today about 3200 members. The group Supporters Groups more appropriate to run modern football reached a peak with over 5800 members in clubs legally structured as companies. the end of 2004 when Malmö FF won the The Swiss Institute of Comparative Law Swedish league. highlights that supporters can become Malmö FF MFF Support is a registered association members of the parent club (non- Malmö FF is a members’ association independent from Malmö FF. For years profit association, with or without an founded in 1910. Today Malmö FF has MFF Support has been representing incorporated sister company), if the articles around 5000 members. The management all supporters as the only ‘supporter of association of the football club permit it. board consists of 9 members which are voice’ that Malmö FF has listened to. The In this way supporters can influence the elected by the AGM, attended by only choreographies are made by a separate decision-making processes at the club via around 5 per cent of the clubs’ members. group called MFF Tifosi 96 with only 3 their votes at the members meeting. The The chairman of the management board official members, needed to adopt the members meeting would for example elect is elected every year, while the other legal form of a registered association. In the board and decide on changes of the eight members of the board are elected reality, however, MT96 consist of around 30 articles of the association. every two years. The candidates for the persons that collect money (last year over As the association holds the majority of management board are proposed by €15000) and organise the choreographies. shares, supporters’ clubs being members the election committee, which consists Everybody that show interest in the tifo- of the parent club could influence the limited of 3 members. The election committee culture can join the group. company through its 50+ per cent stake. is elected each year at the AGM after having been proposed by the chairman Relationship between Malmö FF and Scotland of the board. The previous chairman has its Supporters been in his post for the last 50 years and The relationship between Malmö FF and 1. Ownership Structures of recently stepped down at the age of 70. MFF Support has been described as Scottish Football Clubs This scenario has been described possible very good, for example the chairman of since the interest in the annual meetings MFF Support is in regular contact with Scottish football clubs use the company is rather low and the work of the election the chairman of Malmö FF. One of the limited by shares model common across committee is not transparent enough. members of the management board of the the British Isles. Some smaller clubs In 2007 the former CEO of UEFA, Lars- club was previously actively involved in playing the lower tiers of the Scottish Christer Olsson, analysed the structure of MFF Support and is also a participant in a Football League are unincorporated the club and suggested among other things discussion forum representing the “Malmö members’ associations. The majority of that the governance structure of the club FF-family”. The forum was set up in 2007 club-companies are owned by a single needed to be improved, e.g. job profiles and is moderated by MFF Support. The dominant shareholder, though some have a need to be defined clearly and strategic group has 12 participants representing the greater diversity in their shareholdings, and planning needs to be implemented. Malmö FF-board, the management board of a few are quoted on UK stock exchanges. Currently, a new stadium for 24000 MFF Support, ultra-influenced supporters, spectators with 6000 on a standing terrace older season ticket holders, mothers whose 2. Supporters’ Trusts is under construction, due to be finished in children play in the youth team, staff from spring 2009. The project is funded by the the club, supporters writing for an internet Supporters Direct has been funded to work club and a construction company, which fanzine and Patrik Andersson, a former in Scotland since 2002 and there are now 34 is owned by a member of the management player. With regards to security issues the supporters’ trusts in Scottish football. The board of the club. The project is co- security officer invites representatives from majority owns a small shareholding although financed by the city and a bank. On the MFF Support, Supras and MT96. three have a significant shareholding within one hand supporters look forward to The club also promised MFF Support their club. Twelve trusts have also secured the new stadium but on the other hand to employ a fan liaison officer, after the representation at board level in their they are concerned about the growing German model of the ‘&ANBEAUFTRAGTER’, football club. commercialisation. to mediate between the club and its supporters. In 2008 the club employed Clyde FC 2. Fan Culture someone to work to prevent hooliganism. The Clyde Supporters’ Trust owns 50% of The funds for this model are provided by the club in partnership with other individual Supporters clubs in Sweden are completely the Football Alliance (Fotbollsalliansen investors. The club is currently undertaking independent from the clubs they support Fryshuset), a project which was set up by a research project to investigate options for in contrast to some supporters’ clubs in three supporters of the Stockholm-clubs restructuring the club over the longer-term Germany for example, who form a sub- several years ago and which is funded by a in order to make better use of the volunteers department of their clubs. Many supporters’ trust belonging to the state. and local resources available to them. clubs are not officially recognised by the In winter the Swedish Football clubs. Most groups have adopted the Supporters Union (SFSU) was formed as a Clydebank FC structure of members associations. reaction to a new law designed for football Following the liquidation of Airdrie FC

%8%#54)6%35--!29 in 2002, Clydebank FC was bought by legal force across the UK and are used in remnants of Airdrie FC and its league order to make the process of registration 2. Supporters Trusts place moved to Airdrie and used to form easier, simpler and cheaper. the newly-formed Airdrie United. The 5 of the 6 clubs playing in the English supporters’ trust created a new football Wales pyramid have a supporters trust. There is club wholly-owned by the trust and the only one trust playing the Welsh pyramid, club is playing in the West of Scotland 1. Ownership Structures of at Abergavenny Thursdays. Junior League. Welsh Football Clubs Swansea City Trust Raith Rovers FC There are 6 clubs paying in Wales who The Trust were instrumental in a fan The Raith Rovers Independent Supporters’ compete in competitions in England. campaign to replace former owner Tony Trust now owns around 13% of the club Those are owned in the traditional manner Petty in 2001, and now own 20% of the following a community buyout of the of UK football clubs limited by shares. shares in the club and have a Director as a club in 2006, which it was instrumental Clubs playing the upper reaches of the right on the Board of Directors. in brokering. It has a seat on the Board of Welsh league system also use this form of Directors and has assisted in developing ownership, but further down the pyramid, 3. Adequate Legal Structure of the club’s community presence. other ownership models are used including Supporters groups members’ associations. 3. Adequate Legal Structure of The Welsh Assembly Government The Industrial and Provident Society is Supporters groups which came into power in 2007 had a already used in the UK for trusts and is a commitment to support the extension of legal vehicle in Wales. The model rules in use The Industrial and Provident Society is the work of Supporters Direct into Welsh in the UK have been translated into Welsh. already used in Scotland and the model pyramid football and Welsh rugby union, but rules created by Supporters Direct have discussions have not commenced as yet on making progress on that commitment.

1 The Information on ownership and governance structures of football clubs 8 http://www.istatonline.com/about.php. and the recommendations about the legal structure of supporters groups 9 More details can be found on http://www.derrycitytrust.org/ is taken from the Swiss Institute of Comparative Law, ‘Comparative Study 10 http://www.dundalkfc.com/News/080316_Marshes.asp; http://www. of the Legal Structures of Football Clubs and Supporters’ Organisations in dundalkfc.com/Blogs/Trust.asp. 45 Jurisdictions’, Volume I and II, 2008. 11 http://www.galwayunitedfc.net/gust/index.php?option=com_content&vie 2 http://www.austria-salzburg.at/A-Bitter-End-and-a-New- w=article&id=3&Itemid=6. Beginning.55.1.html. 12 File 003473/07, Jacob Leiwowicz v. Amuta for the Management of Petach 3 http://www.fifa.com/worldfootball/clubfootball/news/newsid=713305. Tikva Football A.R. 580287647 and others, Decision of 4.4.2007 related to html; Soccer Investor, 1 April 2008. the main file 001233/06. 4 SD Magazine, June 2007. 13 E.g. exchange with supporters from SV Werder Bremen: http://www. 5 They take an active stance against fanaticism and violence, racism and bag-fanprojekte.de/index.php?option=com_content&task=view&id=144 corruption in all its forms; e.g. the groups has successfully organised &Itemid=2; http://www.fanprojektbremen.de/index.php;http://www.kos- common stands inviting supporters of other major clubs, something rather fanprojekte.info/news/200801/20080121-israel.html. unique in Greece, where a football game has been allowed to evolve into 14 Interview with Pedro Silva, AAS (official supporters association in open warfare between supporters. Portugal, for Sporting Club of Portugal), London 4 July. 6 http://www.gctni.com/main/page_about_us.html. 15 Swiss Institute of Comparative Law, 2008, pp.185-200. 7 http://www.sligorovers.com/content/view/505/88/; http://www.scene. ie/issue42/rovers_trust.shtml.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? #p2EMAINING5%&! -EMBERS!SSOCIATIONS

Albania Denmark According to Albanian law, there are no clubs have adopted the structure of limited Most football clubs are non-profit restrictions to the legal form football clubs liability structures, public institutions of associations. Professional football clubs, can take. They can choose any form of legal physical and culture of sport, closed joint however, are corporate entities and subject corporation or association. However, most stock companies, public associations and to Danish company laws. Supporters are football clubs are joint stock companies, one is a private sport institution. organised as non-profit associations. The limited liability companies or non-profit Supporters groups are not officially official supporters clubs are members of organisations. organised or recognised and certainly not the Danske Fodbold Fanklubber (DFF). Supporters clubs have no formal registered as legal entities. One reason Supporters can have democratic structure but could become non-profit might be the often too rigid legal framework. influence in the clubs structured as associations governed by their statutes To allow more influence of fans in the running associations. For supporters of clubs with should they decide to adopt a basic of the club they support, football clubs would a corporate structure, the statutes could organisational structure. To increase their need to implement a more open structure, state that a representative of the official influence in the decision-making processes enabling third persons to participate in supporters club must be on the clubs’ at the club, however, they should become the administration of the club. Public management board. shareholders of the joint stock companies corporations (open joint stock companies) that manage football clubs. and public associations are likely to be the Estonia most suitable for this purpose. Most football clubs are structured as Armenia non-profit associations, while some are There is no specific legislation for football Bosnia and Herzegovina registered as private limited companies. clubs or supporters’ groups; they can Football clubs can use any legal structure Supporters could become incorporated adopt any form provided by law. However, available, but many take the form of non-profit associations, which are similar to most football clubs are public associations limited liability companies or joint stock the company limited by guarantee provided (Unions). companies. by English legislation. The form of the Supporters groups are not officially Mostly supporters groups are not legal commercial association, which is similar to registered as legal entities. To include entities, but use informal structures. In order the English industrial and provident society supporters in the management of the club to gain a say in the running of their clubs, used by supporters trusts, does exist in they should be allowed direct membership they could create joint stock companies and Estonia and could be promoted as a more in their clubs. Clubs should have an open cooperate with other joint stock companies, useful alternative for supporters who seek legal structure with no numeric limitations namely football clubs. Supporters could influence in the running of the clubs that of membership, enabling third persons to also establish associations, where rights they support. participate in the club’s administration. The and duties of members would be governed form of joint stock companies and public by its statutes. Finland associations is likely to be the most suitable All football clubs are non-profit associations. for this purpose. Bulgaria However, the members of a football club can Institutions organising football generally incorporate its administration in a limited Azerbaijan structure themselves as joint stock company. There are no particular provisions that companies. Supporters groups are often registered regulate football clubs. Nevertheless, the Supporters groups are mostly as non-profit associations. Through the legal form commonly used by both clubs and structured informally without organisational existing structures supporters should be supporters groups is the public association. and financial structures in place. To gain allowed to have increased participation in There is also no specific provision influence in their clubs supporters can the football clubs they support – directly for supporters’ groups and only a few create joint stock companies, as it offers or indirectly. officially registered supporters clubs exist. the possibility to cooperate with other To include supporters in the decision- joint stock companies, the football clubs. Georgia making processes would require them Supporters could establish associations Football clubs often use the structure of having direct membership in the clubs which would be governed by its statutes. limited liability companies; some have they support. The legal form of public adopted non-commercial forms like unions associations appears to be fully adapted to Cyprus or associations. this purpose. All Cypriot sports associations, sports Generally, supporters are not officially federations and sport confederations are organised and only a few clubs officially Belarus structured as non-profit associations. recognise supporters clubs. To enable Football clubs can take any legal form There is no source of consistent supporters to have a say in the decision- permitted by the Civil Code. There is no information available regarding the legal making processes, they would have to preference for a certain legal forms. Football structure of supporters groups. become members of the club they support. %8%#54)6%35--!29 Hungary F.Y.R. Macedonia Although football clubs could use all Sports organisations can take any legal legislation on non-governmental legal structures available, they are either form provided by the law. However, associations, according to which structured as limited-liability companies or football organisations tend to be either individuals may establish associations limited companies. limited liability companies or joint stock in order to pursue common goals. To Supporters’ groups are mostly organised companies. gain more influence in the running of their in informal structures, while some groups Supporters groups tend to use informal clubs, supporters could create joint stock adopted the structure of associations structures and some clubs claim to be non- companies and cooperate with other joint governed by their statutes. To influence the profit associations. To gain more influence stock companies, namely their clubs. More running of their clubs, supporters can create in the running of their clubs, supporters supporters could also form associations. limited companies, with a board of directors could create joint stock companies and a supervisory board, which would and cooperate with other joint stock Netherlands offer the possibility to cooperate with other companies, namely their clubs. Supporters Most organisations in professional football limited companies, namely football clubs. could become associations bound by their use the legal structure of the limited liability Supporters could also establish associations statutes, the administrative and financial company (BV) or public limited liability but their influence would be rather limited. requirements for which are more flexible company (NV). Currently ten of the eighteen than those of joint stock companies. clubs in the Eredivisie use their commercial Iceland legal entities to organise their club (either Football clubs have to be independent non- Moldova NV or BV)2, but in those ten, two also have profit associations, but many football clubs Football clubs may take any legal form a foundation linked to the company3. Two are linked to companies with commercial provided by law. Information on the legal other clubs use only the form of foundation activities. structure of football clubs is not publicly to organise the club. At least one of the In principal, supporters are not officially available. There is also no information remaining five clubs is an association. organised. However, some are organised available about licensing requirements for Each football club has at in non-profit associations. Overall, they football clubs. least one supporters association have no influence in the management of Supporters are organised in informal (SUPPORTERSVERENIGING). Most supporters’ the club. The legal structure of Icelandic groups. In order to establish groups of clubs are organised as associations football should allow for organised supporters as influential parties in football (VEREINGING). Supporters associations supporters to have a say in the decision- clubs’ decision-making processes, it would have an elected board with a president, making processes of both Iceland’s football be essential to clearly identify the legal a treasurer, a secretary and sometimes federation and their respective clubs. structures that are available to groups of one or two other members with supporters in Moldova and to encourage particular responsibilities. Some national Kazakhstan them to actively participate in the decision- associations represent the interests of The Kazakh legislation contains no specific making processes of the football clubs. As different local supporters associations, like provisions concerning football clubs, but it for those football clubs which are organised the SOVS, 3AMENWERKENDE /RGANISATIES encourages the form of public associations. as non-profit organizations or companies, 6OETBALSUPPORTERS. Currently there are no fan clubs officially a group of supporters may theoretically registered as legal entities. It should be acquire direct legal influence by becoming Norway noted that the creation and activities of a member/shareholder of the club and/or by Norwegian legislation permits football non-registered public associations is appointing members of its executive organs. clubs to be organised in any form, however, prohibited. Supporters could be involved in If a football club is a community association, it is clear that the organisation and its the management of their clubs if they would then the supporters’ organisation, in order to form, to a large extent, are regulated become members. Joint stock companies become a member of the club, must take the by the Norwegian Sport Confederation and public associations appear to be fully form of a community association. If a football (NIF) and of the Football Association of adapted to this purpose. club is organised as a trading company, then Norway (NFF). Thus, the football clubs are the supporters’ organisation may take the FORENINGAR (associations). The supporter Latvia form of an association, a trading company clubs are associations working together Professional sports clubs are limited liability or a cooperative, depending, among other under the well established umbrella companies, joint stock companies or public things, on whether it has the capacity to organisation for supporter clubs: the NSA. sport organisations, while sport federations distribute capital gains to its members. The current organisation of Norwegian and amateur sports organizations often take Moreover, a supporters’ organisation football would allow for organised the form of public sports organisations. could act as the fiduciary administrator of supporters that are members of supporter Due to the lack of information on fan contributions made by the supporters, but clubs admitted to the NSA to participate culture and especially the legal structure that would require specific legislation if the in discussions with the NFF and also the of supporters groups is difficult to map contributions take the form of money. football clubs. Such discussions, possibly out concrete suggestions. Supporters also with the supporter clubs directly, could be involved in the decision-making Montenegro could even be required for certain matters processes if the clubs would open Football clubs may take every legal form by the NFF. In this way the supporters unlimited membership and allow for the provided by law, but tend to use the form of could influence the management of the participation of members in the clubs’ joint stock companies. football clubs directly or indirectly with the administration. The legal form of public Supporters groups use informal participation of the NSA, without risking organisations and joint stick companies structures and in exceptional cases, any personal liability. appear to be fully adapted to this purpose. they take advantage of the Montenegrin

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? Poland Slovakia Polish law allows all forms of legal the status of public corporations (open Football clubs use the forms of joint stock corporations and associations, including joint stock companies) or closed joint stock companies, limited liability companies or corporate entities for organising sports companies, public associations or non- (more rarely) of other business companies. and football activities. Supporters clubs commercial partnerships. Sport Federations Supporters’ clubs are generally organised mostly take advantage of the Associations and Amateur Sports organisations are always informally. Sometimes they take advantage Act according to which individuals may founded as public sports associations. of the Associations Act according to which establish associations and unite in them. There are a few officially registered individuals may establish associations, Exceptionally, supporters clubs are supporters’ clubs, all of which are societies, unions, movements, clubs organised in “simple associations” which structured as non-profit public and other civil associations and unite in are less administratively demanding, and associations. However, the supporter them. Rights and duties of members of have minimal organisational structure. clubs’ tendency to “legalise” their associations are then governed by their Many groups use informal structures. status, to acquire corporate form via by-laws. To enable the supporters groups Supporters groups are often organised registration of public associations has to influence the management, they can on the basis of the Polish Law on been gathering pace in the last five years. create a joint stock company which is the associations, it would be most: efficient for In 2007 the first All-Russian Supporters legal form of a capital company without such supporter clubs in Poland to become Association (Всероссийское Объединение any personal elements. It has a board of shareholders of joint stock companies болельщиков (ВОБ)) was founded, uniting directors and a supervisory board and it which manage football activities in order to local and regional supporter associations. allows for cooperation with joint stock influence the management and the future However, so far there is no indication companies generally used by professional of the football clubs. This would allow for of whether the existing structures of public football organisations. Another possibility increased influence in the decision-making associations actually allow supporters to is to establish an association according without an increase in liability. participate efficiently in a club’s decision- to the Associations Act which gives the making process. Nor is there any information right to establish associations, societies Romania on the practices of supporter-influenced and clubs. Rights and duties of members Under Romanian law, football clubs may clubs. Generally, in order to allow for the of associations are then governed by their be organised as non profit entities, as joint more efficient participation of supporters by-laws. The association structure limits stock companies or as public law entities. in the professional clubs’ decision-making the influence of supporters groups on the Although several important football clubs process, the clubs need to possess a more management of the football club. are organised as joint stock companies, open structure, allowing open and unlimited none of them is a publicly held company membership, eventual membership of Slovenia listed on a stock exchange. corporate entities and direct participation Football organisations generally use Recently, several groups of of members in the club’s administrative the form of a joint stock company, more supporters adopted the form of non- organs. The forms of public associations rarely that of a limited liability company. profit associations, as, for example: and joint stock companies seem most apt Slovenian law allows all forms of legal “Liga suporterilor rapidişti” (association to fit this scheme. entities and associations, including of the supporters of Rapid Bucureşti), corporate entities for organising sports “Asociaţia suporterilor olteni” (association Serbia and football activities. of the supporters of Universitatea Craiova), Serbian Sports Law allows for the Supporters clubs use informal “Asociaţia Independentă a Suporterilor organisation of sports and football activities structures without financial and firm Stelişti” (association of the supporters of in any legal structure, including the structure organisational structures. Exceptionally “Steaua Bucureşti”), Asociatia “Suporter of a corporate entity, but most football they take advantage of the Slovenian Club UTA” (association of the supporters organisations take the structure of joint Associations Act according to which of UTA Arad), Asociaţia Suporterilor stock companies. individuals may establish associations and Sportul Studenţesc Bucureşti (association Supporters’ clubs use usually informal unite in them. Rights and duties of members of the supporters of Sportul Studenţesc structures. A few benefit from the of associations are then governed by their Bucureşti, a team playing in the second Serbian legislation on non-commercial by-laws. To enable supporters’ groups national division). However, many associations according to which individuals to influence the management of the clubs others supporters are not organized may establish associations and unite in they support, they can create a joint in associations (e.g. the supporters of them. Rights and duties of members of stock company which is the legal form of “Dinamo Bucureşti”). associations are governed by their by-laws. a capital company without any personal In order to increase the importance of To enable the supporter groups to influence relationship elements. It has a board of the groups of supporters in the decision- the management of the clubs they support, directors and a supervisory board and making of football clubs, it is essential they can create joint stock companies, it enables cooperation with joint stock to encourage the creation of supporter’s which would allow them to cooperate companies often used by professional associations and to stimulate their with other joint stock companies, namely football organisations. Another possibility involvement in the decisional structures of their football clubs. Another possibility is to establish an association according the football clubs. is to establish associations according to to the Slovenian Associations Act. Rights Serbian legislation, wherein rights and and duties of members of associations are Russia duties of members are governed by by- then governed by their by-laws. The groups Sport organisations may be organised in laws of the association. of supporters can also act within structures any legal form provided by law. In practice, of institutes, which are non-membership professional sport clubs are founded under organisations that can conduct activities

%8%#54)6%35--!29 in the areas of education, science, are independent from the football clubs. culture, sports, etc. Private institutes may To enable supporters to be involved in engage in economic activities intended to the management of their clubs, they further their objectives. Public institutes could become members of the clubs and must be established by a public entity, participate in the clubs’ administration. such as a local municipality , though Reduction of membership contributions, other legal or natural persons may serve which are currently high, may encourage as co-founders. supporters to become members of the club they support and to take a more active Switzerland role in club management. The Swiss Football Association (SFA) requires members to be registered Ukraine associations. Furthermore, the form of the The legislation in force allows for all types company limited by shares is prescribed of sport organisations. Special provisions by the by-laws of the Swiss Football are made for sport clubs, professional League for those clubs which play in the sport leagues, sport federations and public first division of the national league. sport associations. The majority of sport Football supporters are mostly organisations are registered under the organised as associations, while others status of public associations. The majority are unregistered groups. In Switzerland, of professional sport clubs are joint stock the most efficient way for a football companies or limited liability companies. supporter to influence the management The existing official supporters’ groups of a football club is to become a member are registered as public associations. There of the registered association or/and a does not seem to be much interaction shareholder of the company established between football clubs and supporters’ by the club. In these two cases, the groups. Within the existing legislative supporter‘s liability will be limited to framework, one possibility to include payment of the membership fees or/and supporters in the club’s decision-making the price of a share. process is to allow direct and unlimited membership of supporters in the club that Turkey they support. The forms of open joint stock In Turkish law, sports clubs are defined as companies and public associations appear a special kind of associations. In recent to be fully adapted to this purpose. years, many of the biggest sport clubs in Turkey have chosen to organize their sports and commercial activities under the form UEFA Members for which for of joint stock companies. According to the which no information could be law, football activities are excluded from found: supervision of the General Directorate of Youth and Sport and put under the absolute Andorra control of the Turkish Football Federation. Faroe islands In Turkey, supporters’ organisations Liechtenstein take the legal form of an association. Each Lithuania supporters’ association has its own article Luxembourgh as of association. Although supporters’ Malta groups have relations to the clubs they San Marino

1 Most of the information presented here has been taken from Swiss Institute of Comparative Law, ‘Comparative Study of the Legal Structures of Football Clubs and Supporters’ Organisations in 45 Jurisdictions’, Voume I and II, 2008. 2 Clubs are the followings: Ajax NV, AZ NV, Feyernoord NV, Graafschap BV, NAC NV, Nec-Nijmegen BV, PSV NV, Sparta Rotterdam BV, Willem II BV. It should be noted that some clubs also have a foundation associated with their NV like Sparta-Rotterdam and NAC. 3 SC Excelsior and Roda JC.

WHAT IS THE FEASIBILITY OF A SUPPORTERS DIRECT EUROPE? %8%#54)6%35--!29 www.supporters-direct.org

© Supporters Direct 2009 ISBN 0-9549773-2-7