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SANDLANDERS & SUPPORTERS DIRECT FIRST AFRICA FOOTBALL REPORT: CLUB STRUCTURES AND LICENSING DURBAN, NOVEMBER 2014 3 Contents Contact Us 1. FOREWORD – LINKING CLUB STRUCTURES AND CLUB LICENSING 4 SANDLANDERS 2. ACKNOWLEDGMENTS 5 For further information about Sandlanders, please contact: 3. ABOUT 5 Paul Jones Sandlanders Football 4. PART I - CLUB STRUCTURES 8 1st Floor CAN Mezzanine 49-51 East Road London, N1 6AH 5. PART II - CLUB LICENSING 14 [email protected] 6. PART III - SD CASE STUDY: CLUB LICENSING IN GERMAN FOOTBALL 18 Facebook: facebook/sandlanders.com Twitter: @sandlanders 7. PART IV - COUNTRY CASE STUDIES SUPPORTERS DIRECT 7.1 EGYPT 24 For further information about Supporters Direct, please contact: 7.2 NIGERIA 28 Antonia Hagemann Head of Supporters Direct Europe 7.3 KENYA 32 1st Floor CAN Mezzanine 49-51 East Road London, N1 6AH 7.4 SOUTH AFRICA 36 [email protected] James Mathie 8. PART V - CONCLUSIONS AND RECOMMENDATIONS 40 SD Club Development Manager 1st Floor CAN Mezzanine 49-51 East Road 9. REFERENCES 42 London, N1 6AH [email protected] SANDLANDERS & SUPPORTERS DIRECT SANDLANDERS & SUPPORTERS DIRECT © FIRST AFRICA REPORT: CLUB STRUCTURES & LICENSING FIRST AFRICA REPORT: CLUB STRUCTURES & LICENSING 4 5 “This report will provide an insight into how African football clubs are Foreword - Linking Club Structures and Licensing currently organised.” are often asked but the answers, despite ABOUT SANDLANDERS NOTE ON METHODOLOGY being crucial to understanding how Sandlanders works with African African football operates, are difficult The four countries featured as case football clubs, supporters’ groups to find. We have therefore provided an studies represent a geographical spread and associations. We focus on the overview of existing ownership structures (respresenting the largest economy in development of sustainable clubs, across the continent with some analysis each of the four main regions of Africa) league systems and infrastructure of the merits of the respective structures. and a compromise between the goals of and promote democratic community This overview is supported by a more the project and the available resources. ownership, transparency and good detailed review of the markets in four key Whilst there has been some existing governance in the administration of jurisdictions - Egypt, Kenya, South Africa work on the economics and structures of sports in Africa. Our assistance for clubs and Nigeria. We conclude the report with sports clubs in Africa, there is no study and associations includes advising on a summary of conclusions and recom- such as this already in existence. corporate structures and governance, mendations for future practice. Given the diversity of club structures league systems, licensing issues and Based on our experience of involving and legal systems across the continent, sports infrastructure projects. communities in the running of football the report is only able to give a brief As well as developing our own network of clubs, this report will also show, through a overview of each jurisdiction and community-owned clubs and supporters’ combination of analysis and highlighting relevant club structure. Ownership and groups (who are also our shareholders) of best practice, the strength of the links financial details reported have largely competing in domestic leagues in Ghana, between community ownership and been obtained from public sources and Liberia, Sierra Leone, Nigeria, Kenya, community involvement in decision-mak- we welcome comments and corrections Uganda, Zambia and Zanzibar, we work ing at sports clubs and long-term financial from all stakeholders that would allow us on a range of other projects. Our core sustainability and good governance. We to develop this research further in future.” areas of focus are club development; believe that the sustainable success of “We believe that the This is the first annual report to be Regulations across CAF’s 562 member policy, research and advisory and sports clubs flows from the right choice produced by Sandlanders and our associations (“MAs”). The Regulations project management. In conjunction sustainable success of sports of structure, whilst a comprehensive partners at Supporters Direct focusing on are based almost entirely on those ACKNOWLEDGMENTS with Architecture for Humanity, we have club licensing system - on a national and clubs flows from the right the business of football in Africa. Based established by FIFA in 2008 and establish developed designs for SoccerHub - an continental level - creates a fair platform This report could not have been prepared on our experience working with clubs, sporting, infrastructure, personnel, integrated sports and community facility choice of structure.” for competition and rewards well-run without the valuable contributions of associations and supporters’ groups in administrative, legal and financial criteria specifically for use in Africa. clubs. a variety of African football industry nine African countries over the last five to be met by clubs - all areas in much stakeholders and experts including In addition to market-specific knowledge years, we have observed that weak need of improvement across Africa. Community ownership is already a big fans, clubs, associations, journalists, obtained from our clubs, through a football club structures and an absence part of sporting culture in many parts corporate sponsors and lawyers. formal partnership agreement with of effective licensing is at the core of To aid understanding of the challenges of Africa and clubs and supporters now Supporters Direct we are able to draw many of the key issues affecting football ahead, this report will provide an need to take steps to ensure that this In particular, we would like to thank on their experience of working in on the continent. insight into how African football clubs involvement translates into financial Adam Moustafa and Ahmed Assem (of over 20 European countries assisting are currently organised. In contrast to sustainability and good governance Egyptian football website kingfut.com), While the adoption of the CAF1 Club local communities and clubs develop football in Europe and elsewhere, there which has to-date not always been Nasr El Din Azzam (Sport Makers, Licensing Regulations (the “Regulations”) democratic forms of governance. is still a general lack of information demonstrated. Egypt); Oluwada Lotfi (Egypt), Claudia in 2012 provides a foundation for change relating to the administration of sports Ekai (Kenya), Omollo Arthur Omondi in the African game, there remain Paul Jones, Director, in Africa. Questions such as “Who owns (Kenya), Mdudzi Mdunge (South Africa), challenges ahead to ensure effective Sandlanders Football the club?” “Where does the money come Ayodeji Adegbenro (Nigeria) and Michael monitoring and implementation of the from?” and “Where does the money go?” Adebayo (Nigeria). SANDLANDERS & SUPPORTERS DIRECT © SANDLANDERS & SUPPORTERS DIRECT © FIRST AFRICA REPORT: CLUB STRUCTURES & LICENSING FIRST AFRICA REPORT: CLUB STRUCTURES & LICENSING 6 ABOUT SUPPORTERS DIRECT Supporters Direct (“SD”) is an organisation that assists democratic football supporter organisations in achieving formal structured involvement in their clubs and associations and developing supporter community ownership of football clubs. SD also advises clubs on their ownership and governance structures, and works with football associations, leagues, UEFA, and other European institutions. Through our SD Club Development consultancy we have the expertise to assist clubs in a variety of situations. In respect of club licensing and supporter involvement, our work over more than a decade has given us a recognised expertise in how decision-making structures in football can be improved to encourage long-term sustainability. SD currently operate in over 20 European countries, having been set up as a UK-based organisation in 2000. On the initiative of the UK Presidency of the European Union, in 2005, José Luis Arnaut was commissioned to undertake what became known as the Independent European Sport Review. One of his recommendations directed at the football authorities was for them: “to examine the feasibility of a European Supporters Direct body”. UEFA liaised with SD in the UK to address this recommendation and funded a 12-month feasibility study, managed by an independent researcher that commenced in July 20073. The resulting paper illustrated a clear desire amongst supporters and supporter owned clubs for similar services to those offered by SD in the UK, but with elements tailored to their national contexts. ABOUT COMMUNITY OWNERSHIP ‘Community Club’ is a phrase that is becoming more and more popular when talking about football and other sports globally. In Africa, the phrase is commonly used in a variety of contexts when talking about a club with links to its community. For the purpose of this report, we define ‘community ownership’ as meaning; • A minimum of 50% +1 of the voting rights of the club are controlled collectively by a democratic entity which has an open and inclusive membership. • ‘Democratic’ to mean the membership of the entity to work on a one member one vote principle. • ‘Inclusive’ to mean that there are no substantial barriers to participate as a voting member, with membership open to all that are sympathetic to the aims of the club. • Any profits are reinvested back into the club as opposed to being distributed to shareholders. • The club is committed to running as