August 18, 2007

Own Your Own English Soccer Team: MyFootballClub

Duncan Riley

44 comments »

myfootballclub.jpgUK based MyFootballClub is aiming to take the power of collaborative social membership to the world of English soccer by purchasing a professional English soccer team using user contributions.

The site launched in April and had over $500,000 in contributions within its first 24 hours.

The legal side is fairly simple. Contributors become members of the MyFootballClub Trust for £35 ($69). £27.50 goes towards purchasing a soccer club, buying new players and other club expenditure with the remaining £7.50 going towards administration. The Trust will acquire a soccer club only on the basis that the purchase provides a controlling stake (51%+) of the club and where the club is either debt free or has a manageable level of debt.

Members are then said to have “an equal say in team selection, player transfers and the running of the club.”

MyFootballClub aims to buy a mid-tier English soccer club with an aim of building the club into a future Premier Division side.

At the time of writing MyFootballClub had over 53,000 members and had taken more than £1.375 million ($2.73 million) in member subscriptions. The site is currently in negotiations with four prospective acquisition targets.

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Trackbacks/Pings (Trackback URL)

  1. Own Your Own English Soccer Team: MyFootballClub » TechAddress
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  5. Dirigir un club de fútbol en modo crowdsourcing » El Blog de Enrique Dans

Comments

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  1. FIFA World Cup

    That is really so cool! I joined and am very excited to make a vote. It may not make me a millionaire but it certainly makes me feel like a football shareholder. :)

  2. ex-pro

    as an ex-pro i can say that this is not a particularly good thing, all of your work for selection is done on the training ground over the week, fans decisions will be made purely on performance.
    this may even result in players that are not 100% match fit being chosen to play when otherwise a manager would have chosen to start him on the bench and ease him back into fitness.
    in addition people on the board are within the football industry do not usually make decisions regarding team selection and tactics, historically when this has happened there have been issues, chelsea & carlisle being the most recent examples.

  3. Jamie Carruthers

    I looked in to this when BBC News covered it. I remember thinking it was a waste of money - it would be great if members were given shares in return for their money and ‘management’ advice, therefore making it a potential investment - but they don’t.

  4. Mario Ruiz

    Hi Duncan.

    Soccer, here in Europe is a sport all-year-round. I spend plenty of years in US. Although we have American Football, there is nothing like soccer here.

    The fans do anything for their club. To be a member of the Real Madrid is more expensive than 70 bucks, and you get a card with a number saying, you are a member: nothing else. To save the club is worth it the technological effort.

    I understand that this is news for you.

    Mario Ruiz
    @ http://www.oursheet.com

    PS This is why a group of Americans bought the Liverpool soccer team.

  5. Duncan Riley

    Mario
    I’m not American, and I live in a State that has 30% of ppl born offshore, with 95% of them English. I was also previously the manager of our State Junior Soccer Association. Having said all of that I found it interesting because it’s not something I’ve seen before. Real is the exception to the rule.

  6. Derrick

    This is a tad risky. I mean people who are not on the ground daily could be making massive changes to the club. Which may be influenced by media or popular opinion.

  7. FIFA World Cup

    Let’s just says its innovative and it could work or not work. It’s not that far from a manager who sucks all season long despite having onsite experience and stuff.

    They are the first mover and if things turn out great then people would follow.

  8. John

    I like the idea. Soccer (football) is becoming a bigger and bigger business and everyone wants to get a piece of the action and why not give more voice to the individual who’s buying tickets. More and more EPL teams are being bought up by foreign investors: http://www.soccertraininginfo......_teams.asp

  9. Mario Ruiz

    Hi Duncan.

    I am not saying it not interesting. I am saying it is more interesting this new idea to the Americans who they do not understand what is to be part of a soccer team as in Argentina, Italy, England or Spain.

    There was a war in Central America named the War of Soccer between Honduras and El Salvador. Although the soccer match between the two national teams was the pretext to fight for 6 days, it is simthomatic of the pasion it brings this game to other countries.

    Mario Ruiz
    @ http://www.oursheet.com

  10. Jimmy Huen

    You know I am going to monitor this real close. It is really interesting to see how it’s going to turn out. Every fan would love to own a piece of a professional sports team given a reasonable chance.

  11. Antje Wilsch

    @Mario I’m sure the “americans” are smart enough to figure out the idea is interesting, all passions aside. Maybe Beckham will bring soccer fever to the US also. But hopefully not to the point of killing each other and going to war over a sports game! I’m sure you’d see the same passion for major league baseball, basketball or US football if done similarly.

    Go FC Bayern München!

  12. ElyFall

    This model is gr8. It should also be applied to startups.

  13. oknoorap

    relly, I like English Soccer, But The champion of the world, is yet Brazil

  14. David Beckham

    it’s been absolutely incredible.

  15. ben mackerel

    before you know it they will be giving everyone the right to vote how a country is run!!

  16. Not Techcrunch worthy!

    Not to burst anyone’s bubble, it takes a whole lot more than 1.3 million dollars to buy a club. In Europe, that won’t even buy you one decent player. The Independent newspaper, valued big clubs Arsenal at $567 million and mid range clubs like West Ham at 85 Million, Tottenham at 120 Million pounds. Man United was sold at $790 million and Liverpool at 470 Million pounds. Queens Park Rangers may be bought out for 30 million pounds but that’s a bargain — so my point is that soccer clubs aren’t cheap.

    Just for arguments sake, that a lowly English football (soccer) league club cost 20 million, and going by the site signing up 50,000 people raising 1.3 million — that would take roughly 520 milion people to sign up to reach the 20 million pounds mark. That is a ridulously big number! … putting that into perspective, it would take approx. everyone in the WHOLE USA to each sign up TWICE to get that $$$.

    One also needs to realize that raising the money to buy a club is just one part, you’ll need a whole more to keep it a float in it’s day to day activities, facilities upkeep, staff salaries, and its league survival to name some. And where is that money going to come from? … if you going to buy a cheap club, the sponsorships and TV endorsements aren’t going to be as good as buying a bigger club — so the owners will eventually need to foot that bill.

    My other question is, if they don’t successfully buy a club, what will happen with the money — will everyone get their money back or something?

    Third point being, having a club owned and run by that many people will be a nightmare to administer. Could you imagine if everyone tried to vote for a simple decision or club law to be made and come to some sort of disagreement, it’ll be impossible. You’ll also have the guys that paid for ownership that might not make decisions for the best of the club but through their personal judgements — some may not even know what they are talking about, may not have the business knowledge and might just listen to the media and worse case their friends and relatives. The saying “too many cooks spoil the broth” comes to mind.

    This seems more like a game than an actual business transaction with the site owners creating false expectations. With the site supported by EA Sports, it might be just that. Spending your money with a Soccer Manager game like Championship Manager or Worldwide Soccer Manager may be a better (and cheaper) than spending it on this and kidding yourselves — hoping it would work out.

    Lastly, as intriguing as it is, I do not think that this site is worthy enough to be mentioned on Techcrunch worthy — can’t believe Michael Arrington even allowed this site to be on here.

  17. cayne

    @16
    you need to redo your math calculation:
    50,000 people raising 1.3 million =! 520 milion people to sign up to reach the 20 million pounds

    hmmm…

    I think it’s an cool idea, we will see if it works out…

  18. Person

    @ Not Techcrunch worthy! (#16)

    20 million divided by 1.3 million = approximately 15.4

    50 thousand * 15.4 = 769,230.

    So actually, at their current donation rate, it would take around 800 thousand members to get to 20 million pounds. Which is a little less than the 520 million people you think they would need. In fact, if they had that many members they would have around 13 billion dollars, which would probably make them eligible to buy a soccer club or two. (520 million divided by 50 thousand = 10,400. 1.3 million times 10,400 = 13,520,000,000).

  19. Bioretention

    Neat! I’m not much of a football fan but this is a great idea.

  20. Cold Warehousing

    How’s L.A. working out for you, Beckham? I see you had 2 assists today.

  21. JeJe

    Thanks you, Person. Funniest comment I’ve read on techcrunch since a long time.

  22. Joshua

    Although it probably won’t work I do think that it is a great idea. I don’t see how the ‘equal vote’ will work. It might hamper the team if they need to act quickly on a deal and have to wait for people to vote before they can proceed.

    I say why stop with a ‘middle-tier’ club. Go all they way to the Premiership, I’m sure that it’s not much more to buy Sunderland.

    I’ll donate $69.

    http://www.koork.com

  23. KingJacob

    I wanted to do this with the Dynamo but I wasnt planning on giving donators anything more than a piece of paper cause giving them all voting rights would be nightmare.

  24. Tradervic

    I am a huge soccer fan, but I believe even a mid-tier english team is going to take “MUCH” more than this site has accumulated thus far. But who knows, this could be a model of things to come.

  25. Footyball news

    Great idea but my initial thoughts were that they’d never raise enough and just launder money for a while. I guess they are proving me wrong with the front page announcement that they are in discussion with 4 clubs.

    Good ol’ Accrington Stanley in at #4 in the top clubs too :)

  26. Wes

    I think the idea is great but running a football is far more complex. All teams want to reach the premiership and they may acquire a team but they will need a lot of money to get the club running and be successful.

    I also wonder whether some of the members will still be interested if the club gets relegated or worse still drops into the conference league.

    I will be following with great interest to see what happens to this interesting initiative.

  27. Michael Vu

    Although it may not work as planned, it’s a very unique and interesting idea. Thanks for covering this TC.

  28. sky

    Another unique way to waste time and money.

  29. A Million Dollar Girl

    I’m surpised about this great project, it’s amazing the way entrepreneurs think new ideas to make money.

  30. will

    i hope my team are not a target of this project- if the peope who have bought shares in the company get to make the decisions about transfers and tactics it cannot be a succesful club on the pitch.

  31. Rebelmc

    @ #16

    Note that the GBP£35 is an ANNUAL subscription, meaning that the club could in theory borrow on the strength of this additional income. Even at a high rate of interest if you have an income of say GBP£1m annually you can quite easily borrow, say, GBP£8m.

    In any event the lower division clubs are worth much much less then the millions of pounds you are citing. I am a member of “myfootballclub” and it seems clear that we’ll be able to buy a club for only around GBP£1m.

  32. tobias

    this story has been doing the rounds for a while… and the best coverage was in the Guardian

    http://football.guardian.co.uk.....10,00.html

    definitely worth a read

  33. backofthenet

    Join us! Bring football back to the fans!
    For the price of one cheap premiership match ticket, you can have
    voting rights for a year as a club owner/manager. Pick the team
    that will play on saturday afternoon.
    It is happening now!
    A takeover of a club is imminent!
    50,000 people can’t be wrong!!!
    http://www.myfootballclub.co.uk
    Join Us!

  34. Keith Handley

    For the latest news of this project, please see

    http://www.myfootballclub.co.uk/latestnews.php

    Hope to see you on the MYFC forum soon, its great fun, or say hello on to me at myspace

    http://www.myspace.com/myfcyorks

    best wishes

    Yorkfox

  35. Sorry Tobias

    Good try Tobias. You’re right, this story has been doing the rounds, in the world’s press. Strange then that you should find the only negative (and factually incorrect) article.

  36. techguy

    #12 “This model is gr8. It should also be applied to startups.”

    Interestingly there is a startup that is using this co-op/trust model to reward those members of the community that help them do well. It’s called Cambrian House http://www.cambrianhouse.com/

    They call the initiative Community Owned http://www.cambrianhouse.com/h.....ity-owned/

  37. Will

    Why would I invest in this “company” when I get nothing in return? Not a penny…

  38. Pros A. Tamos

    I really like the idea, because it is one step further in the direction of a new business order. Wisdom of the crows!!! The only questionsmark for me is whether the public media will influence the individual decision to dramatically (See Hary Seldon on Psychohistory) and therefore no independent decision making takes places (Also the reason for stock market crashes).
    Anyway I will participate.

    Pros

  39. Andy

    There is similar site in US http://www.kingpinclub.com
    They try to do the same with US teams, buy I do not think they will mange to register enough members :(