Co ownership in Sport - More Power to the Supporters

I had an interesting day yesterday at the Centre for Mutual and Employee-Owned Business which is based at Kellogg College, Oxford. The Centre was started bas a response to the increased interest in the participatory approach to stakeholder involvement in co-owned and mutual organisations.  The centre is the focus for research and professional development serving the mutual and co owned sectors.  There are differences between co operatives, mutuals and employee owned businesses, there is a strong bond that ties them together; the importance of organisations being run by those who share the interests of that business, rather than in the often conflicting interests of external shareholders.  For example, in employee owned businesses, the employees are the shareholders (either directly with an individual shareholding, or indirectly through a Trust). In mutuals, the customers might also be involved as in the example of mutual building societies where customers are "members".  Indeed, just as employee owned firms seem to be faring better in the recession (see earlier post here), the mutual building societies have escaped much of the crisis experienced by the rest of the financial sector.

This idea of co-ownership extends beyond business. I read a thought provoking article by Dave Boyle of Supporters Direct, the organisation which promotes the mutual model in sport.  FC Barcelona is a mutual, owned by 130,000 members who elected a new management team in 2002.  After years of poor performance on and off the pitch, the team has been very successful and is respected around the world.  Contrast this with Manchester United;  loaded with debt and the fans protesting about the ownership.

Dave Boyle states that mutuality and sport are a perfect fit because the relationship resolves the tension between the economic and sporting goals of a club, and the club's status as a business and cultural institution.  The Bundesliga voted last year for fans to own a majority of shares in the club. They believe that it guarantees stability, continuity and proximity to supporters.  There are currently 169 Supporters' Trusts in the UK.

Just like an employee owned business, a football club owned by a supporters' trust is owned by people who want the enterprise to be successful in its purpose, who want respect for the history and tradition, and to serve its place in the community.  They also want the club to be solvent, and to be affordable for fans.

According to Dave Boyle, ticket prices have outstripped inflation by around 1000%.  Many clubs, large and small, are struggling with their finances right now. The advantage of the mutual model is accountability for poor performance.  It's not that mutual clubs will do better , but when they don't do as well, the people to whom it matters most can do something about it.

The co ownership model works in so many ways and in so many different environments.  The evidence is that when external interests can be managed and even eradicated, then those closest to the enterprise (whether it be employees, customers, supporters or members), can run the enterprise more successfully.  And this is success defined widely- success for the enterprise, for the employees, for the community.