Football Governance - Culture, Media and Sport Committee Contents


Written evidence submitted by Scarborough Athletic Football Club

INTRODUCTION

This brief document is to highlight various aspects of the supporters owned club Scarborough Athletic FC to be reviewed in the debate on football governance including:

—  The demise of the old football club and the departure of a senior footballing side from the town of Scarborough.

—  The inception of the Scarborough Supporters trust and formation of the club.

—  Progress made since the formation of the club.

—  Future plans and ambitions.

—  Support and help gained from Supporters Direct.

BACKGROUND AND THE DEMISE OF THE OLD CLUB

1.  After years of decline, Scarborough Football Club was wound up in the summer of 2007. This followed the clubs fall from the football league and down the non league pyramid. As the trust was formed before the demise of the old club, they looked at trying to keep the old club going. The club had not filed accounts at company's house for over four years and details and records were unable to be attained. Dave Boyle who was assisting from Supporters Direct at the time had said "he had been involved with the establishment of over 150 football trusts and Scarborough FC was the worse case he had seen!" This may have been avoided with more stricter and enforced "Fit and proper persons tests" and much stricter FA financial reviews of football club affairs which could have prevented the old club from getting into the state it was allowed to get.

2.  The club had entered a CVA and liquidators had been appointed. The CVA was "irretrievably breached", when the directors of the club formed a new company "SFC Seadogs Limited" and obtained a deposit of £ 30,000 on the promise of the building a new ground from another company and proceeded to use this money to pay players and acting outside the terms of the CVA, the club was then declared bankrupt. In light of this evidence the club had placed Scarborough Borough Council in an impossible position and that the improper conduct of the directors meant that the council could not help even though they recognised the value that a senior football club brought to the town and its businesses.

3.  In June 2007, following the winding up of Scarborough Football Club Limited a Liquidator was appointed and took control of the McCain stadium at Seamer Road. The stadium site was subject to covenants that had been in place since 1960, when the Council sold the football stadium to Scarborough Football Club Limited. These covenants protected the council's interest in the land and required that the land was to be used for the purpose of football or other sports or pastimes. In addition the council retained first right to buy back the land subject to reaffirm the purposes for which the restrictive covenants on the football ground where established and ensure that the Councils interest in the land was safeguarded.

4.  Recognising the problems that were developing for the club, in March 2007, Scarborough FC Supporters Society Limited was formed and on 25 June 2007 Scarborough Athletic FC was formed.

5.  Following arbitration the stadium was purchased by the Council for £1.335 million in December 2008. In January 2008 a report was presented to the Council detailing that neglect of the security of the ground during the period it was retained by the Liquidator had resulted in a period of theft and vandalism. An assessment of the cost of returning the ground to an acceptable standard to resume playing football was estimated at £1 million. It was identified that even with the expenditure identified above, the repair and maintenance costs of the existing stadium with its single remit for football would place an unsustainable burden on the football clubs that would use the stadium and lead to similar problems to those faced by the former Scarborough Football Club.

6.  In the absence of a stadium, Scarborough Athletics newly formed side thanks to the formed trust had to move and play their home games some 22 miles out of the town in Bridlington competing in the Northern Counties East League Premier Division.

WHAT HAS HAPPENED SINCE THE TRUST REFORMED THE CLUB

7.  Created a new and active trust membership base which then voted and elected a board of representatives/directors to help move the club forward. This membership has since been growing and now stands between 600-700 members

8.  The trust negotiated a deal with neighbours Bridlington Town which allowed a newly formed football club to be able to hold and play their home league games there which would enable the new club to compete at a decent standard.

9.  The trust negotiated with the FA and the NCEL to enable the newly formed club to compete at the highest standard they could at the time compete in.

10.  The trust appointed a management team that assembled the playing squad for the year and also created a pool of volunteers who would help out on match days and with fund raising.

11.  Trust established a working relationship with the old club's Supporters club which has flourished since with both parties working together on various aspects of the club.

12.  The trust have been working hard to keep the identity of the club alive in the town itself, with regular school visits and clubs been run during the year. Holding regular board and fans meetings in various locations around Scarborough and holding various fundraising events around the town as well as plenty of PR work and advertising.

13.  Helped to create a regular attending fan base of around 400-500 fans for home matches whilst increasing trust membership and support to 600-700 members.

14.  Since formed the club have created a Reserve side which was designed to give local players a chance to showcase their talent and push towards getting into the first team. This also was a step in helping bring the local community closer to the football club.

15.  Also since the trust formed the club have now created an under 19s side which as mentioned above will go further to strengthen local community ties with the town of Scarborough. The under 19s are hopefully going to be launched for the next coming season in a competitive league.

16.  The trust are continually working with creating a working relationship with the towns other football and sporting organisations with a view of trying to seek future co operations for the benefit of football and sport as a whole for the town of Scarborough.

17.  The club are now in their fourth competitive league season since the formation of the club by the Trust and have achieved promotion to the NCEL Premier League.

18.  The club have their own commercial revenue streams with merchandising and sponsorship opportunities of which the club have gained from local businesses in the town.

19.  Created a self sustaining football club which has recorded profits two out of its first three years of trading, whilst six months into the current trading year the club has posted profits circa £ 4,000. The club also boasts a strong balance sheet with no loans or debt and with money in the bank, although whilst currently playing out of the town the club holds little fixed assets.

AMBITIONS TO BRING THE CLUB BACK TO SCARBOROUGH

20.  It is recognised by the board and the club that for the future security and progression, the importance of securing a move back to its home town within the next few years.

21.  The club is currently in regular dialogue with the Scarborough Borough Council over the situation and working with them in respect of their proposed Sports Village which would encompass in part, a new football stadium for the football club. The council aim to dispose of three sites which contain a swimming pool, sports centre and the old football ground and then to create a new sports village encompassing a range of different sports to hopefully enhance and better Scarborough sports facilities and in turn sports for Scarborough as a whole.

22.  The club will be involved in the consultation process of construction of the proposed new ground within the complex which is to be built to a suitable FA Step C Level with scope to improve to FA Step Level A if required.

23.  However under the current economic climate and cuts in funding, this proposal has risks of been deferred and delayed.

24.  The club are also researching and looking into the Community Share Scheme idea adopted by FC United of Manchester in order to possibly raise funds to help facilitate their move back to the town. Hopefully there would be opportunity for the club to purchase the ground off the council and have ownership, and or part of the sports village. Failing this then the club could look to raise funds to purchase all year round money making assets to help make the club more sustainable and stronger for future progression. Such items could include property, 3G pitches to hire out all year round etc.

WHAT WOULD HELP?—COMMUNITY SHARES/TAX RELIEF ETC

25.  Community Share Schemes and access to various funding/grants would be very beneficial to the trust and club in:

26.  Raising funds/capital to possibly purchase its own land/stadia/football facilities back in the town of Scarborough and progressing with the strengthen of the clubs balance sheet and assets held.

27.  To raise funds to purchase money making/fund generating assets ie property/3G pitches/bar/restaurant etc.

28.  This scheme would help to engage and bring the local people and businesses of the community from different and new target audiences together behind one community cause.

29.  Tax reliefs and other benefits of such investment schemes would help encourage and attract a lot more investors to buy shares. Not only would they start to get a modest return annually with a view of receiving their investment back in the future, they would also receive a one off tax relief during their initial investment year which would save them a sum of money making it a much more attractive proposition. This would be very encouraging for investors and also see local communities taking more responsibility for their football clubs The community share scheme issue could possibly prove to play a pivotal role not only in the club returning home to its town, but to putting in place a structure and long term sustainable business model run by the community for the community of Scarborough.

HOW HAVE SUPPORTERS DIRECT HELPED SCARBOROUGH ATHLETIC

30.  Helped the initial trust members form a committee and in turn a board. Also assisted with the formation of the trust and essentially the new club. They helped provide us with a management structure detailing how we should establish a board.

31.  Helped form the club society rules and regulations from which the trust is governed and run by. Provided guidance in establishing the Trust constitution and governance and did the same again when we became a football club instead of a trust.

32.  Have always offered advice and support on matters when needed.

33.  Have helped in the provision of legal and professional support from linked supporting bodies.

34.  Provided regular courses and workshops to help enhance the directors various abilities required to run a football club and therefore enhancing their abilities and skills.

35.  Provision of readily available access to information and guidance and governance updates.

36.  Support and guidance on initial research into the community share issue scheme as well as various other schemes in operation.

January 2011


 
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© Parliamentary copyright 2011
Prepared 29 July 2011