The fans ownership: case for South Africa football

By Mahlomola Martin Lefupana

Football is the most passionately followed and played sport, an estimated 3.5 billion globally support the game yet there is a sense that fans are being priced out of the game financially and emotionally. Football is historically known as the sport of the working class, but recent ownership of football clubs and how the game is run is increasing isolating the fans.

The current football ownership structure is characterised as business, corporate, and entrepreneurial in nature. While is acknowledged that football has become a multi-billion rand business, it remains a social business in nature and therefore the fans are the cornerstone of the business. The growth of football as a business through media exposure, broadcasting rights and sponsorship investment has ensure that football has becomes a key aspects of entertainment industry and contributor to the economy.

Football clubs ownership in South Africa have historically been in the hands of individual owners and family businesses. The concept of supporter ownership is largely unknown nor practiced in South African football fraternity. Is there a need for supporters ownership of professional football in South Africa? I argue that there is a need for fans ownership or ownership of football clubs between business people and supporters.

The recent demise of Moroka Swallows football club, with a debt of more than R100 million, and the current financial struggle of Bloemfontein Celtic and other Premier Soccer League (PSL) exposes issues of single person ownership and its sustainability. The continuous decline of attendance in Premier Soccer League  is an indication that football fans are no longer regarded as key part of the fabric of the game. The current ownership of club have to led to football fans no longer feeling strong bonds, lost identity with clubs and no longer sense of moral ownership.  

The supporter ownership of clubs is a successful model in South America and parts of European leagues such as German Leagues, Spanish Leagues and increasingly in the Scottish Leagues. How successful is the model for supporter ownership? Boca Junior, Borussia Dortmund, Barcelona, Bayern Munich, Real Madrid are known as some of the best football clubs in the world, with successful financial revenues and footballing success, yet they are largely and partially owned by supporters. It is worth noting that supporter ownership of clubs have several benefits, the clubs that have supporter ownership are known for high transparency when it comes to the finance and operations of the clubs. The Annual General Meeting serves as the platform for the club to account to its members through presentations of reports, financial details and other related issues.

The clubs that are owned by supporters are known for high attendance, this mainly because it is in the interest of the supporters to attend matches to get high return of results and football success. The other benefit is that the club supporter have a right to vote for their own supporters to serve in the board of the directors of the football clubs. This means that the decisions are not only held by businesspersons who own the clubs, but rather have a decision making process. I argue that therefore, supporter owned clubs have prospect of football success and financial sustainability, than businesspersons or company owned clubs.   

The need for supporters ownership is more relevant in Bloemfontein Celtic, the club finds itself in deep financial trouble and supporters are willing to buy share to get the club out of financial trouble for its success. Moroka Swallows a classic example of how better to implement the supporter ownership of football clubs, as a matter of public record, the club is owned by its supporters and is free from financial debt. While the fortune of Swallows have not drastically changed since it became supporter owned, it can be argued they are on a good trajectory for coming back to elite level. We premise our argument that supporter ownership is key to the sustainability on the basis that football remains a community commodity and supporters are best placed to add value to the game.

Given the success in high attendance of football matches in Germany, South America and across the European Leagues, it can therefore be argued that supporter ownership possesses huge potential for South African football if it can be implemented. There is a notion in South African football that does not see supporters as key stakeholders in the game, thus, undermining the impact they have in the success of football industry. I further argue that South Africa football requires this ownership model to bring back the supporters to the football matches and this will create interest from investors because of well-run clubs. The model will strengthen the financial position of the clubs, good governance and therefore better playing squad and be more competitive in the leagues. Perhaps it’s time to take the game to the people in the true sense, by offering the supporters the real stake in ownership of the clubs.