Originally Posted by
Enoch Mort
This update was sent to Trust Members following last Saturday's meeting with Mehmet Dalman and the King's Speech. It's a long read but with an interesting reference to the mysterious Malaysian board members. The Club seems to be reasonably well positioned to be compliant with the proposals
Dear Member
Following on from the meeting with Mehmet Dalman and Supporters Groups on 11 November, as requested, I have prepared a summary of the current state of play regarding the Fans Led Review of Football and the specific impact on Cardiff City FC, especially in the light of the King's Speech to Parliament.
As Supporters Trust members will know, I have been greatly involved in the above matter on behalf of the Cardiff City Supporters' Trust and fans of Cardiff City in general since the initial proposals were made leading to the publication of the Fans Led Review Paper in November 2021. This included liaison with the Football Supporters Association and meeting and lobbying Parliamentarians at Westminster.
The Government response to the Fan Led Review was published in April 2022 for further consultation with stakeholders and the formal White Paper on the matter was published in February this year.
The King's Speech this week has committed to bringing this into primary legislation during the forthcoming parliamentary session. From our discussions with several politicians over the above-mentioned period, it seems certain to be passed into law. It has extensive cross party support up to and including the Prime Minister and is promoted by both the Secretary of State for Digital Media Culture and Sport (DCMS) Lucy Fraser MP and the Minister for Sport Stuart Andrew MP.
Major changes
The legislation is described by Lucy Fraser as the "most radical overhaul of football governance" for over a century and the key change will be the appointment of an Independent Regulator for English Football (IREF). The IREF will have wide ranging powers over football with the objective of having ultimate control over three main areas
1. Club sustainability
2. The stability of the football pyramid
3. The protection of football clubs heritage
Implementation of the changes
All clubs in the top five levels of men's professional football, and the top two levels of women's` football will need to hold a licence issued by the IREF or they will not be allowed to operate as a professional football club at the above levels and will be required to publish their Football Club Corporate Governance Code. Section 4 of the White Paper sets out four licence threshold conditions
1. Appropriate financial resources
2. Suitable owners and directors
3. Fans' interests
4. Approved competitions
The appropriate financial resources point is self-explanatory with a need for evidence of sufficient current and projected funding to support a club. Personally, I don't foresee this being a problem for our club.
The suitable owners and directors' point is dealt with in sections 6 and 7 of the White Paper:
Para 6.3 – There is recognition of and reference to problems certain clubs have had with non-existent non-executive directors, an absence of AGMs and boards with only a sole director.
Para 6.7 – Makes specific reference to s172 of the Companies Act requiring directors at all times having a duty to promote the success of the company they are listed as directors of.
Para 7.11 – There will be more robust owners and directors' tests going forward.
Para 7.34 – There will be oversight of owners and directors on an ongoing basis to ensure continued compliance.
Will there be any issues for the club going forward concerning directors as we have some who have been listed as directors for several years without having any published or apparent role at the club? Perhaps clarity on the club website as to what they actually do would be helpful ?
Fans` Involvement and Engagement
Before referencing the relevant legislation, could I just say how pleasing it is that the club is working with fans to put in place a suitable fan engagement plan ahead of it becoming a mandatory requirement. The creation of a Fans Advisory Board(FAB) is progressing with an intention to hold a first meeting between the fans board elected by the fans and senior club officials in January 2024.
These meetings will then be held quarterly. These will be key decision making meetings and will be in addition to the current Supporters Liaison Officer (SLO) meetings which primarily are to deal with supporter travel and matchday issues and the proposed twice yearly Fans Parliament meetings which will give the wider fanbase the opportunity to meet with senior club officials in a more informal question and answer format.
The statutory requirements for future fan engagement are set out in Section 8 of the White Paper where it states that the IREF will set out a minimum standard of fan engagement for clubs under their licence and gives fans an effective veto over club heritage matters such as proposed changes to club badges, home kit colours and stadium sales or relocations
Para 8.5 - Clubs will need to satisfy the regulator that they are regularly consulting with a representative group of fans on key strategic matters at the club and other issues of interest to fans such as club heritage.
Para 8.9 – The IREF will expect to see a Memorandum of Understanding regarding the above and both agendas and minutes for the meetings.
Para 8,10- The expectation is that a "shadow board" will be formed of fans (the FAB will qualify) to at least include the club`s Supporters Trust and female representation, with a significant proportion of fans to be elected.
Par 8.18 –If there are proposed heritage changes, clubs must show evidence that any such changes have been approved by most of their fans.
These are some of the key points that the Club will have to comply with in the short term. It is encouraging to note that the Club is progressing the Fans Advisory Board (FAB) and the Fans Parliament which will complement the existing quarterly Supporters Liaison meetings. The willingness of the Chairman to meet with fans regularly also indicates the intent of the Club to enhance fan engagement.
Keith Morgan
Chair
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