Mutuality for Football Clubs? Lessons from the Financial Sector

Studies in Economics and Finance 22, 2004, pp. 26-41

19 Pages Posted: 6 Nov 2014

See all articles by Andrew Adams

Andrew Adams

University of Edinburgh; Business School

Seth Armitage

University of Edinburgh - Accounting and Finance

Date Written: 2004

Abstract

The mutualisation of two English third division football clubs in 2001 and the creation of a large number of supporters’ trusts make it timely to consider whether there is a case for mutualisation of football clubs. This paper assesses whether mutuality would be of economic benefit for clubs, drawing heavily on the experience of mutuals in the financial sector. Our conclusions are mixed. The economic case rests on the distinctive feature of customer loyalty to a club, presuming this to be much stronger than loyalty to a financial institution. However, club members in a mutual must expect to be called upon to provide financial support.

Suggested Citation

Adams, Andrew and Armitage, Seth, Mutuality for Football Clubs? Lessons from the Financial Sector (2004). Studies in Economics and Finance 22, 2004, pp. 26-41, Available at SSRN: https://ssrn.com/abstract=2519418

Andrew Adams

University of Edinburgh; Business School

University of Edinburgh
29 Buccleuch Place
Edinburgh, Scotland EH8 9JS
UNITED KINGDOM

Seth Armitage (Contact Author)

University of Edinburgh - Accounting and Finance ( email )

29 Buccleuch Place
Edinburgh, EH8 9JS
United Kingdom
44 131 650 3794 (Phone)

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