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Governance presentation

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Kenta Ando

on 24 March 2015

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Transcript of Governance presentation

Good Governance and football: an impossible match?
Discussion
Network Governance
Football Association (FA)
International Federation of Association Football (FIFA)
Issues with FIFA:
Kenta Ando, Sarah Walling, Tom Gardner
"Unbounded or bounded clusters of organizations that, by definition are non-hierarchical collectives of legally separate units." (Alter and Hage, 1993, p.46)
Film Industry
Film Studios
Producers
Directors
Cinematographers
editors
Network Governance in European Football
Shift from a hierarchical structure to a complex web of stakeholders
Geeraert et al., 2013
... but why did it change?
Commercialisation of Football
businesses interested in financial benefits
rise of powerful stakeholders
Shift towards network governance
Public Authorities
Internationalisation meant that football was now a cross boarder activity
British Government
Culture, Media and Sport Committee releases a report on football governance
Representative Organisations
Officially recognised by UEFA and the EU
Have organisational capacity to influence football governance
Who are the Players?
Involvement of the European Union (EU)
new rules established - subject to the EU law
eg. Bosman Ruling
- International Federation of Professional Footballers (FIFPro)
- Association of European Professional Football Leagues (EPFL)
- European Club Association (ECA)
I want to change the rules...
FA
Premier League
In order for a rule to change...
Founded in 1863
Governs football in England and standardised the laws of the game
Two Tier Structure
Board
Council
 Chairman
 Chief Executive Officer (currently vacant)
 4 National Game Representatives
 4 Professional Game Representatives
 2 Independent Non-Executive Directors

Professional Game Board
National Game Board
118 members
representatives from the professional & semi-professional game, county and other football associations
Committees
(a) Referees Committee
(b) Protocol Committee
(c) Leagues Committee
(d) Membership Committee
(e) Sanctions and Registrations Committee
(f) Alliance Committee
(g) Youth Committee
(i) Representative Matches Committee
(j) Committees Appointment Panel.
Football Regulatory Authority
Judicial Panel
... a bit more on the FA / English football
The old model
A need for change
The new model
Strengths
Weaknesses
Issues with FA governance
Fundamental problems
the
licensing model
the way supporters are engaged at club level
the membership of the main
board
, which is not fully
representative
or able to balance interests adequately
Recommendations for the FA
1. Reform the FA board
More strategic direction for English football than “association of interests”
2. Reform the FA council
Parliament of football
Improved inclusivity
Follow Germany’s structure?
FIFA’s understanding of governance
Forgotten stakeholders
Conspiracy of silence
None of this is new - since 1904
2018/2022

a matter of culture or structure?
Lord Triesman (independent chairman of the FA from 2008-2011)
Bonita Mersiades (FFA Member, senior manager of the Australia 2018 bid team)
Darren Bailey and the EU expert group on good governance (Director of football governance and regulation at The FA)
Emphasis on a good organisational culture determines the ability for good governance.
How do you fix an organisational culture?
Recommendations for FIFA
Limited terms of office
Increased transparency
Introduction of independent board members
Integrity checks
2018/2022 inquiry
Improve relationships with member organisations
FIFA needs to recognise that there is a problem !
Supporters Involvement in the Governance of Football
The FA...
"Football fans are the lifeblood of the club they support.”
- Sports Minister Helen Grant
Only 14 league clubs currently have fan representatives on their board
The football supporters federation
Supporter Liaison officers
Supporters direct
However...
Premier League Swansea City's Swansea City Supporters Trust owns 20% of the club
The Football League Pyramid
Supporter Owned Clubs
Can you see a pattern?
cases for increased supporter involvement…
Commercialisation/Modernisation of Football
‘In the last 20 years English football has seen a
shift in ownership
. Traditionally owned by local businessmen, many clubs have been bought and sold by a
new breed of entrepreneurs
from both the UK and overseas. In many cases owners have been proved to be
short-termist,
seeking swift improvements in team performance through
debt funded investment,
often mortgaging the ground and/or increasing ticket prices in pursuit of success.’
Club debt & Administration
Profit not spent for the benefit of the fans…
“There is
no excuse
for the price of tickets to rise above the rate of inflation. The money from the Premier League’s new media deal needs to be
shared
more
evenly
across the
pyramid
and there is no reason why some of it cannot be
passed onto the fans
instead going straight into the
pockets of club owners
and players”
Andy Green (Football Supporter)
Derby County Supporter on the lifting of Rule 34…
‘This has brought extra
‘investment’
into the game, but also began to attract elements who were purely involved to make a profit for themselves, usually at the expense of the club and ultimately the supporters.’
Michael Clarke, Chair of Football Supporters Federation
German Bundesliga...
’50+1’ rule
It is a model that ensures the majority shareholding (50 per cent plus one) in the company which operates the club lies in the hands of the members’ club rather than in the hands of external ‘investors’.
50% +1 is a minimum required level, and the club can own anything up to 100% of the shares.
Why would supporter involvement help English football?
Corporate interest is curtailed by the interests of the supporters
Mutual ownership should mean profit is driven back into the business
Broadening the base of ownership allows increased accountability and transparency through the involvement of a wider group of interests in financial matters
A new perspective?...
Democratic structures can also ensure that the strategic development of the club is aligned with the interests of the club and its stakeholders, which can bring commercial benefits.
Companies run with a view to the long term interests of their key stakeholders are more likely to prosper..
...but is it possible in English Football?
‘Whilst many fans would prefer their club to be run the traditional
‘local boy done good’
type of owner or through
fan ownership models
, the
reality
is that the
finances
demanded in order to compete at the top of the premier league mean that this is
now rarely possible

Brian Lee – Chairman of football governance
FIFA congress - overarching organisational body
FIFA Executive Committee - under scrutiny
209 member associations which comprise the 6 confederations
football family
Problems with FIFA
Governing Bodies
FIFA and UEFA, the two main bodies
Funding programmes
Goal Programme (FIFA)
Women's Football Development Programme (UEFA)
Is effective governance possible when FIFA is essentially trying to be two different types of organisations; public body and a commercial body?

Does the play-off between corporate governance and non-profit governance mean that good governance within FIFA is an impossible match?
With regards to FIFA's rejection of the short term loan system of the FA due to the lack of a 'good relationship',
Do you think the FA should raise their voice and question this decision?
THank you!
Any questions?
1. Is the culture of FIFA the cause of its governance failings or is it the internal governance structure?
2. Is FIFA's slogan, 'For the game, for the world', reflective of the decisions made by the board? Why aren't they?
3. To what extent do you think the Bundesliga's 50+1 rule would work for the FA?
4. To what extent do you think the commercialization of the FA acts as a barrier to increased supporter involvement in the governance of football?
5. Hugh Robertson has previously described football as the worst governed sport in the UK. To what extent do you agree or disagree with this claim?
6. Do you think the decisions made by governing bodies reflect the views of those that are concerned? Or are they just a reflection of the views of the few powerful interest groups?
The future of fan involvement ?
The essential drawbacks of fan involvement
1. Have appropriate, equitable and inclusive representation of the games stakeholders (players and supporters)

2. Have transparent and accountable decision making

3. Best practice management systems

4. Compliance and regulation of law

5. Accountability of leadership

.....In all of these FIFA has failed
What has FIFA done in response to its criticism?
Full transcript