FC United go with Cobbetts on 'Punk Finance' concept

 Source: Football Trade Directory

 Northern Premier League club FC United of Manchester have teamed up with law firm Cobbetts to work on 'punk finance', a concept which allows community groups and societies raise funds without the need to lend large amounts of money from banks.

The groundbreaking scheme comes after FC United raised £1.5m for their stadium development by raising capital through share issues, in exhange for shareholders having a say in how operations are run.

It is hoped that FC United's model can be copied by many other smaller organisations and in partnership with Cobbetts they have produced a pamphlet which promotes the 'punk finance' model.

Speaking on the Manchester Evening News website, FC United General Manager Andy Walsh said: "FC United was established to create a better way of running football clubs. Finance and governance problems dog the sport, and new financial and business models are needed which give clubs greater stability.

"The governance of the game would be vastly improved if clubs were run as clubs with supporters given a more central role.

"The community shares model we have developed with Co-ops UK and the legal framework that we have put together with Cobbetts offers a route to financial stability.

"Punk Finance is about clubs raising finance for themselves instead of looking to outside ‘investors’ who put their own interest before that of the club.

"Our own success in raising finance has shown what can be achieved even at a time of economic uncertainty and provides a model for others who care about football as a sport and community enterprise."

Matt Morris
14th July 2011, 12:18