Andy Burnham has received a call to take action against a sports ownership model deemed “fundamentally broken” by establishing a new organization aimed at empowering supporters. The Co-operative Party, affiliated with Labour, is advocating for the creation of a new entity, dubbed Supporters Direct 2.0, to promote supporter and community ownership across various sports.
According to a recent report, this initiative would provide legal, governance, and development assistance to sports clubs, thereby diminishing the influence of private financial interests. The proposal comes in the midst of controversy surrounding FIFA’s plans to sell a share in the World Cup. Despite initially considering establishing a separate $20 billion company to manage its competitions, FIFA reversed its decision following widespread criticism.
The report characterizes English football as a “global commercial success story” but points out a discrepancy where supporters contribute loyalty, culture, and community identity to clubs’ value, yet ownership and decision-making are predominantly controlled by a select few private entities. It emphasizes that most Premier League clubs are owned by international investors like hedge funds and private equity firms, advocating for a shift towards more community ownership models.
The Co-operative Party highlights the recent attempts to sell World Cup shares as a cautionary tale reflecting the challenges within sports ownership and the necessity for change. Additionally, issues in Rugby Union have surfaced, with multiple clubs facing financial troubles, including London Irish, Worcester, and Wasps. In Rugby League, financial difficulties have affected several teams, such as Keighley, Salford Red Devils, Featherstone Rovers, Halifax Panthers, and North Wales Crusaders.
In the realm of cricket, Yorkshire’s chief executive, Sanjay Patel, is pursuing the transformation of the club from a members-run organization after 163 years, citing potential consequences of missing out on test matches if the change is not implemented. Joe Fortune, General Secretary of the Co-operative Party, asserts that private ownership predominates in sports, leading to adverse effects on fans, and calls for a redistribution of power to supporters and communities through a revamped Supporters Direct organization.
Andy Burnham, the first Labour and Co-operative Prime Minister in history, previously chaired Supporters Direct, emphasizing the importance of fan ownership in football. He once stated, “I have always believed that football clubs belong more to their supporters than their shareholders,” underscoring the essential role fans play in the essence of every club.