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Football clubs shown yellow card: a survey has found flaws in their corporate governance.

Document Cited in Related
Vincent
AuthorBerens, Camilla
PositionRisk Management

Fewer than half of England's Premiership and Football League clubs have a three-year business plan in place and only a quarter have conducted specific risk assessments, according to a survey on corporate governance in the industry.

The research, by the Football Governance Research Centre (FGRC), highlights the growing concern over the trend in football towards high-risk financial planning. The findings back up the FGRC's concern that the overall governance standards of clubs on the stock exchange are well below those of listed companies in other sectors.

In its research report, The State of the Game, the FGRC acknowledges that over the past three years there have been some moves towards better governance in the industry as a whole, but it warns that there is still "considerable need for improvement".

Christine Oughton, director of the FGRC believes that the industry must adopt a tailored best-practice code if future funding crises are to be avoided. "Football clubs are unlike other companies in that all too often their main objectives--to excel in sport and to run the business--conflict," she said. "It makes more sense to create a code that eaters for the industry's special circumstances."

Geoff Pearson, director of studies at Liverpool University's Football industry Group, welcomed the FGRC's idea, but raised doubts over the value of a code if it didn't have appropriate sanctions to back it. "Floated clubs are already guided by specific...

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