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FC United of Manchester

FC United of Manchester. Manchester’s Leading Cooperative Sports Club April 2012. Outline. Background Approach Future. Background . The State of the Game Revenue Top 4 Divisions £3.5bn PL = 80% PL clubs debt = £3bn 14/20 PL clubs made a loss

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FC United of Manchester

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  1. FC United of Manchester Manchester’s Leading Cooperative Sports Club April 2012

  2. Outline • Background • Approach • Future

  3. Background The State of the Game • Revenue Top 4 Divisions £3.5bn • PL = 80% • PL clubs debt = £3bn • 14/20 PL clubs made a loss • professional clubs - 56 insolvency events since 92 • Portsmouth £137M debt

  4. An Alternative? • Fan-owned clubs • Cooperatively managed clubs • Fan Centred clubs • Community Focused clubs Football Clubs as - CLUBS

  5. Origins Formed June 2005 - Glazer takeover Core Principles: Democratic, not for profit, one member one vote Creating access and participation through football Community Commitment Youth focus Manchester focus ‘Accessible & benefit to all the communities of Greater Manchester’ Background

  6. Fans c.3,200+ members Average attendance – 2,000 Up to 25% Under 18 High female participation Accessible to low income families - £8, £2 Atmosphere – 90/90 culture Over 1000 season tickets Club Elected board of 11 people General Manager, Secretary and 4 FTE 2 general meetings a year Up to 300 Volunteers Democratic decisions on name, badge, board, shirt, prices, rules Development 2005-2012

  7. Partnerships established with City Council & other Local Auth. Key areas: education, social inclusion, health, community cohesion Initiatives include: Schools tournaments, coaching, classroom Estate based delivery Education initiatives Match Day events – People United Day, Youth United Day Turnover 2010-2011 - £150k Volunteer Coaches Manchester College Sponsored Minithon charity fun run Community Commitment

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

  9. Finance • Grant Funding £2.4m • Club Funds £2.4m • Community Shares £1.7m • Donations £0.7m

  10. Two-year action research programme, funded by Cabinet Office & DCLG, delivered by DTA and Co-operatives UK, working with 10 organisations raising community investment completed April 2011: Ashington Minors – childcare nursery Cybermoor – rural broadband services Brixton Green – community land trust and urban regeneration FC United of Manchester – building new stadium Hastings Pier & White Rock Trust – development trust Hurst Green Village Shop & Centre Oxford Cycle Workshop Training Sheffield Renewables – urban renewable energy schemes Slaithwaite Co-operative – community-owned greengrocers Tutbury Eco Power – renewable hydro energy Community Shares Programme

  11. A unique form of capital • Shareholder democracy: One-member-one-vote not one-share-one-vote • Honesty not speculative gain: Withdrawable shares cannot increase in value (but they can decrease in value) • £20,000 maximum holding of withdrawable shares: but agreements can be reached • Flexible cap on share interest rates: No more than is “sufficient to attract and retain” the investment – 2% above base rate

  12. Punk Football – Punk Finance • Statutory asset lock • HMRC – Enterprise Investment Scheme • Support of Local Authority • Support of grant bodies

  13. FC United Experience • Launched 2010 Ten Acres: £1.5m • Feb 2011 £1.3m • Relaunched Nov 2011: £1.6m • March 2012 £1.7m

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

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