News & Views

Fan ownership and influence - Legal and commercial considerations for football investors

As fans become ever more integral to the commercial value of professional sport, broadcast revenues, sponsorship deals, matchday income, and brand equity are now aligned with supporter engagement, meaning long-term value in sport is linked to fan trust, loyalty, and stability.

As professional football continues to attract much of the institutional capital – be it from private equity or multi-club ownership groups - ownership structures and governance models are coming under greater and greater scrutiny. Regulatory developments in England, including the Football Governance Act and the establishment of an Independent Football Regulator, have formalised expectations around supporter engagement and strengthened oversight of ownership suitability.

This article considers fan ownership alongside other mechanisms that allow investors to incorporate fan interests within commercially viable governance structures.

The financial landscape - why context matters

Recent industry analysis underscores the financial pressures facing professional football. According to a survey conducted by BDO, over 90% of clubs across the top four English professional leagues expect to report pre-tax trading losses for 2025, even after factoring in profits from player trading. The same survey found that nearly as many clubs anticipate they will require additional shareholder funding in the near future, with a significant minority acknowledging that this may involve minority investment or joint venture structures.

These findings reflect a broader economic reality: professional football remains highly capital-intensive and often loss-making at operating level, irrespective of record revenues in the Premier League. High wage bills, spiralling transfer fees and widening financial disparities between and within leagues all contribute to persistent structural deficits.

For investors considering governance models that elevate fan interests - including fan ownership - this context is crucial. It highlights that governance frameworks must accommodate not just cultural alignment with supporters but also the underlying financial structures that enable sustainable investment and competitive performance.

Fan ownership - features and limits

Fan ownership commonly arises in circumstances of financial distress, identity threat, or governance failure. In these contexts, supporter-led models have demonstrably delivered stability, protected heritage and preserved local engagement.

Instances such as AFC Wimbledon and Exeter City illustrate that clubs with committed supporter bases can establish governance structures where supporters hold substantial voting rights and influence key decisions. These arrangements have contributed to community alignment and, in some cases, on-field success.

However, it is important to note that the financial model underpinning fan-majority ownership often places limits on capital access from a commercial perspective. As clubs ascend the football pyramid, investment requirements intensify - from player procurement and wage commitments to infrastructure and academy development. In such environments, structures that restrict equity dilution may struggle to support sustained competitive performance without external capital injections.

The BDO survey underscores this reality - the widespread expectation of losses and need for additional shareholder funding speaks to the broader capital demands of the modern game.

Governance design considerations

Clubs with material supporter ownership or influence often adopt representative governance structures, with boards or committees elected from within the supporter base. While this can enhance legitimacy and engagement, it introduces legal and commercial considerations that require careful structuring.

From an investor perspective, dispersed ownership and representative governance can affect decision-making speed, execution certainty, and capital flexibility. Divergent shareholder interests may complicate responses to regulatory change, financing requirements, or strategic opportunities, particularly where approval thresholds are unclear or overly restrictive.

These challenges, combined with the capital demands of professional sport, have led a number of clubs to consider partial dilution of supporter control through minority investment or revised constitutional arrangements that preserve fan influence while enabling access to capital.

Regulation and evolving requirements

The Football Governance Act establishes a statutory requirement for clubs to consult supporters on defined matters affecting identity and strategic direction. It does not mandate fan ownership or prescribe specific governance models, but it does formalise expectations around engagement and transparency.

These obligations will sit alongside the incoming Independent Football Regulator, which will oversee licensing, financial sustainability, and ownership suitability. Governance design is therefore becoming an increasingly important regulatory and transaction consideration.

For investors, governance structures that demonstrate credible supporter engagement are likely to reduce regulatory friction, support licensing outcomes and mitigate reputational risk, particularly in change-of-control scenarios.

Alternatives to fan ownership

Here are a number of established mechanisms that allow clubs to incorporate supporter interests without transferring control or constraining investment flexibility:

• Board representation - Appointing a supporter representative or observer to the board provides a formal channel for fan input, while allowing fiduciary duties, confidentiality, and decision-making authority to be clearly defined.
• Reserved matters and golden shares - Supporter trusts may hold limited veto rights over narrowly defined heritage matters, such as stadium relocation or use of historic club assets. When carefully scoped, these protections can safeguard brand value without impairing commercial strategy or transaction certainty.
• Structured engagement frameworks - Formal supporter councils or consultation processes can satisfy statutory requirements and demonstrate regulatory compliance, without creating governance or control issues.

The investor perspective

For ownership groups, fan inclusion at the board level is best understood as a risk management and value-protection tool.

Governance frameworks that embed supporter engagement in a legally robust and proportionate way can facilitate transactions, support regulatory approvals, and protect long-term asset value.

 
Some final thoughts

Fan ownership remains appropriate in limited circumstances, particularly where community preservation is the primary objective. For most professional clubs, alternative governance structures provide a more flexible approach, allowing supporter interests to be recognised while preserving control, capital access, and compliance with evolving regulatory standards.

Early consideration of governance and supporter engagement can materially reduce risk and enhance long-term sustainability for investors and ownership groups.