How fan ownership can change football for the better - the case of the Foundation of Hearts
We like stories where football steps away from the plutocrat signings and mega-media-deals, and recovers its roots in community. Here’s a great story from Open Democracy on how the historic Scottish (and Edinburgh) Heart of Midlothian - known better as Hearts - turned itself round from a moment of bankruptcy in 2012, by virtue of a combination of fan power, and a turn back to their social improvement role.
The Foundation of Hearts had been established in 2010 by a group of local Hearts-supporting business people who had grown disillusioned with Romanov’s [the club’s previous foreign owner] stewardship. Joined by a host of other Hearts supporters’ groups in 2013 and backed by a rapidly increasing membership, each pledging a monthly amount of £10 or more, the foundation set out to achieve its aim: returning custody of the club to its fans.
The supporters were aided in their mission by Ann Budge, a successful IT entrepreneur, Hearts supporter and member of the foundation who stumped up £2.5m of her own money to acquire the club’s majority shareholding in 2014 – hauling it from the brink of extinction in the process. Without her initial generosity, the club simply would not have made it.
In the seven years since, Budge has set about rebuilding the club on more sustainable financial ground while restoring its previously neglected social consciousness. This included introducing the national living wage to club employees and using the team’s shirts (commonly reserved for commercial sponsorship) to promote charitable causes such as Save The Children and MND Scotland.
And with the continued monthly backing of its 8,000-strong membership, the foundation gradually repaid Budge’s initial outlay, culminating in the club’s ‘Heart & Soul Day’ celebration on Monday when Budge officially signed over her shares to the foundation, making Heart of Midlothian the UK’s biggest fan-owned football club.
In Scotland, supporters are the lifeblood of their clubs. But it’s a two-way street. At no period has that been more pertinent than in the past 18 months, when the COVID-19 pandemic not only starved many clubs of their usual match day revenue, but also cut off a primary source of social engagement for thousands of supporters. Scottish football may not boast the star quality or vast riches of the English Premier League, but that fundamental interdependence is a source of great pride.
The article continues:
As I scrolled through the congratulatory posts on social media this week, I was amazed by how many supporters of other clubs harbour similar aspirations to what the foundation has achieved.
The main issue for those groups is how they can get their foot in the door. Like Hearts, many clubs that have achieved fan ownership had to build from the ground up, usually after a financial collapse that threatened (or even destroyed) their very existence. Hearts were also hugely fortunate to have a supporter such as Budge not only provide the necessary capital at the time, but also facilitate such a gradual repayment. Not every club has such a saviour waiting in the wings.
For the Foundation of Hearts, the fan ownership journey has only just begun. There are likely to be many challenges along the way: maintaining pledges at a consistent level even when the team performs badly; remaining competitive and growing as a club; and ensuring the next generation carries it forward. How the foundation negotiates these elements will be the subject of great interest for like-minded observers in the years ahead. But one thing that will help its cause is the undeniable fact that a club’s fanbase is its only true constant.
When I think back on Hearts’ time in administration, it’s clear how fortunate fans such as myself have been to be part of such a strong and supportive community. A community who believed they could make a difference, who lived and breathed the Foundation of Hearts from the start and put their blood, sweat and tears into saving such a crucial part of fans’ lives and preserving it for future generations.
Oligarchs may love the idea of a football club, but they will never love it the way its supporters do. That deep connection is what sits at the heart of fan ownership and will ultimately drive its success.
More here. And there are more clubs in Scotland going down this route - St. Mirren completed a fan-ownership plan in late July, The co-owners are now a Paisley-based social care charity and leading social enterprise Kibble, who last year bought a 27 percent stake to become part-owners of the club.