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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