The Trust
What is a Supporters Trust?
The basic definition of a Trust is a democratic, not-for-profit organisation of supporters, committed to strengthening the voice for supporters in the decision making process at a club, and strengthening the links between the club and the community it serves.
Why form a Trust? How does it differ from a Supporters Club?
The main differences between a Trust and a Supporters Club can be categorised as being twofold - attitudinal and organisational.
The organisational one is easy - it's Supporters Direct’s belief that an Industrial and Provident Society (IPS) offers the best way forward for fans groups as it’s legal assets can be owned 'corporately' in a group rather than being vested in individuals. Members also get the benefit of limited liability (and so do the elected officers in most cases) - members are only liable for £1 if anything goes wrong - for example, if the Trust is sued.
As a corporate body, the full force of the law can be brought to bear on anyone who misappropriates the funds. It's also democratic and not-for-profit and states clearly and boldly that a key aim is the securing of representation and strengthening the links between club and community. The idea at the heart is "why always be criticising, when we can be participating - we think we can bring huge benefits to the club".
As an IPS can own shares or property, it is a vehicle that can, at the very least, own a significant shareholding. It can sign contracts with the club for shares received and set the terms of the deal – a supporters club, which is unincorporated is on much shakier ground in that regard. The powers exist to employ staff, contract pensions and manage people within a democratic structure. There are businesses that are an IPS that are much bigger than fan groups and football clubs. The Co-op Group for example has a turnover of approximately £9Billion each year.
Finally, the people who get involved in a Trust as members know that their money is protected - it can't be spent on anything other than what the constitution says, if it is, anyone who does this can be taken to court.
However, a Supporters Club could still be a Trust in the sense that it could convert to be an IPS and want a place on the board, this is where the attitudinal side comes in - it's about putting a professional face to the club and saying 'we're capable, skilled people with something to offer the club. That doesn't mean that we are unable to criticise or beholden to the club - as a democratic organisation, the members determine the Trust’s policy and stance towards the club.
An IPS imposes certain disciplines on a Trust, which can only be a good thing - democracy, accountability and transparency - and this can only reinforce the points the Trust make. Basically, it comes down to what you, as members, want the Trust to do.
Why do some Trusts aim to influence the Board whilst others seek to own shares or get fan Directors?
Each Trust has to look at what the situation is at their club and act in the way most likely to produce results. At some clubs, the owner might not be up for selling shares, so the Trust might look to get hold of the share register and try and find other sources. At other places, the value of the club is so much that fans are unlikely to ever have the wherewithal to get 10s of millions together, so they look to be the bridge between the club and community and get credit for that.
As you don't have to own any shareholding to be on the Board, it's not necessary to own a stake in the club (though it usually helps). All of them are united in a desire to make the mechanisms for dialogue between club and fans as solid as possible, and as entrenched as possible, so it can't be undone should ownership or personnel change and a different group of people come in who want to end that dialogue.