Thursday, September 13, 2012
A state that serves and protects the powerful
Monday, March 01, 2010
Fans revolt grows
Will top flight football go the same way as the banks and collapse as debts become unpayable? Portsmouth FC is already in administration, the first Premier League club to suffer that fate, and many Manchester United fans fear the long-term future of the club is endangered by a mountain of debt.
That’s why many of them staged a colour-coded protest at yesterday’s Carling Cup final at Wembley. They chose to wave green and gold scarves and wore hats of the same colours instead of the United’s famous red and white in a protest organised by the Manchester United Supporters’ Trust (Must). The green and gold was intended as a symbolic reminder of Newton Heath, the club founded in 1878 that then became Manchester United in 1902.
Must is campaigning for the removal of the Glazer family, who run a US sports corporation. They bought United in 2005 with money borrowed from the banks. Last year, but for the sale of Cristiano Ronaldo to Real Madrid for £81m, the massive interest payments on the club's £700m plus debt would have meant a net loss, although the club won the premiership and reached the final of the UEFA Champions League.
There’s a similar protest movement by Liverpool supporters, whose club has £300m in debt following a buy-out by another US business group. Fans are so concerned that there is even talk of a joint protest with arch rivals United when the teams meet in a few weeks.
The Premier League as a whole is the most indebted in Europe, owing more money than all the other clubs in Europe's top divisions put together. The European governing body UEFA calculates the combined debts of just 18 Premier League clubs at just under £3.5bn, around four times the figure for the next most indebted top division, Spain's La Liga.
The fans are angry that top clubs in England have become a milch cow for big corporations and that as a result, the game has become remote from ordinary working people whose support was once taken for granted. More than that, the sense of community that clubs provided has gone for good and replaced by expensive admission, merchandising and players tempted by huge salaries into boorish behaviour.
And where it was once possible for a variety of clubs to win trophies and titles, that is definitely no longer the case. Without a rich backer, clubs cannot bring in the world class players and managers. For many fans, the Premiership is reduced to a competition between a US corporation (United) and a Russian oligarch (Chelsea) and the rest struggle for the minor placings.
With banks reluctant to refinance debts except at punitive rates, the Premier League’s position can only worsen. As the recession deepens, more and more fans will become TV watchers rather than spectators. UEFA says the English model is unsustainable and will require clubs to break even financially from 2012-13. Naturally, the Football Association has insisted that English clubs should still be able to top up with external finance, in practice rejecting UEFA’s rule while signing up to it on paper.
On Saturday, fans from across the country attended a Beyond the Debt rally organised by FC United of Manchester, a club formed by United fans disillusioned by the Glazer takeover, and sponsored by Supporters Direct, a fans' organisation. Dave Boyle of Supporters Direct told the meeting: "Football clubs shouldn't be owned by individuals, or even a group of individuals. They should be owned by supporters."
Too right! And, of course, the same principle should extend to other areas of culture and the economy. Private, corporate ownership isn’t working. Common ownership and control, on a not-for-profit basis, is the way forward as our draft Manifesto proposes.
Paul Feldman
Communications editor
Monday, November 17, 2008
The spirit of Shankly lives on
“The socialism I believe in,” said the legendary Liverpool FC manager Bill Shankly, “is everybody working for the same goal and everybody having a share in the rewards. That’s how I see football, that’s how I see life.” He is no doubt turning in his grave over the plight of his former club, whose future is now in the hands of crisis-ridden banks.
Shankly’s sentiments, common enough amongst football fans through time, have long been side-lined and ignored as big money and even bigger egos have taken a grip on the clubs at the top of the game and steered them away from their historic roots into a very dangerous place – the capitalist market place.
Premier league clubs alone are in debt to the banks to the tune of £3 billion; the situation in the lower professional divisions is even more critical. The total debts of these clubs is over £400m. Many clubs in the lower divisions are in hock to the tax authorities and could go bust at any time.
Liverpool and Manchester United have debts of £350m and £650m respectively. Their new American owners in both cases are extracting large sums from the clubs just to finance the buying of them in the first place. It is by no means certain that Liverpool’s owners, Tom Hicks and George Gillett, will be able to extend or re-finance their loan with their bankers, the troubled RBS, in January. Everton, with debts of around £60m, is up for sale, but so far there are no takers.
It is possible that with TV money, continuing big crowds, loans from the billionaires, and a soft approach by the banks (unlikely now), they will be able to ride the storm for a while, but there will be no hiding place in the medium and long term. What happens when hundreds of thousands of fans lose their jobs or find their savings and pensions funds, if they have them, devalued? How will they possibly afford the high-priced tickets? There will be gaps in the stands, ticket prices will have to come down and revenue will fall.
The other, and perhaps the most important factor, that could overturn the survival strategies of the clubs is the fans themselves. Long taken for granted, they are now beginning to assert themselves. Many Liverpool fans, for example, would support a financial boycott of the club should the present American owners remain in control after January 2008. In a poll carried out by the Liverpool Supporters Network last week, three quarters of the 2,000 fans canvassed said they were willing to withdraw financial commitment to the club in the form of match tickets and merchandising.
In Manchester, when the Glazer family bought Manchester United in 2005, a group of angry fans set up a rival club United FC which regularly attracts over 2,000 to home matches and boasts on the home page of their website that “FC United is owned by its members”. An adult ticket to a home game costs £7.50. Governing bodies FIFA and UEFA, which have warned about the indebtedness of English clubs, have taken an interest in United FC’s progress.
In Liverpool at the beginning of the year 350 supporters packed into a pub in Anfield and set up what they claimed was the country’s first football supporters union, with a series of aims. A short term aim is “to hold whoever owns the football club to account” and the ultimate aim is “the supporter ownership of Liverpool Football Club”. They call themselves the “Spirit of Shankly”, they have the quote about socialism by Shankly on their banner, and they symbolise the spirit of revolt by fans of football at the way in which their passion has been prostituted by the profit agendas of the new owners.
Peter Arkell