Burns Report Fails to Address the Problems of the FA
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By Sports Nexus in Football Published: Saturday, 13 August 05 - 06:00 AM (GMT) Last Updated: Saturday, 09 February 08 - 12:13 PM (GMT) |
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One would have thought, after months of work on an organisation which has been failing for decades to do its job, today's findings by Lord Burns would offer some straightforward solutions to make the FA a more effective organisation.
On the contrary, overall Lord Burns has chosen to ignore many of the proven practices of similar sized businesses and organisations and instead offers a structure which if implemented has the potential to hinder not enhance the decision making process.
Please see below a brief summary of our reaction to the report:
We welcome the introduction of independent non-executive directors to the Board which was a key proposal of the Football Governance Research Centre’s State of the Game Report published in 2004. We also welcome the creation of a semi-autonomous Regulation and Compliance Unit. However, we feel that the proposals do not do enough to ensure that the FA meets the same standards of corporate governance that one would expect in other sectors. In our view:
- The proposed new Board is too large and goes against the recommendation of the Higg’s Review (2003, p. 22)[1] which concluded that ‘An effective board should not be too large as to become unwieldy.’ Our report, The FA: Fit for Purpose? is consistent with the Higg’s guidance and argues that the FA Board should be reduced to 8.
- Lord Burns’ report proposes increasing the size of Council but taking away its powers by transferring much of its strategic role to the Board. While we agree that Council is not at present an effective strategic body, as it is too large, we advocate strengthening Council by reducing its size so that it can play an effective strategic role. Again, there is best practice guidance that can drawn on the size of Council that appears to have been ignored.
- While Lord Burns advocates making the Council more representative, the transfer of strategic powers from the Council to the Board means that supporters, players, referees, managers, the Football Conference, etc will now have a place on Council only to see the powers of Council severely curtailed. In contrast, our report recommends that Council be more representative and that it be reformed to make it an effective strategic body.
- The FA has a two-tier governance structure (with a Council and a Board). There is dedicated code of corporate governance that sets out best practice for two-tier systems which are commonly used by world class businesses on the continent and by trade associations and governing bodies. Two-tier structures are ideal where there is a need to involve stakeholders, as is the case with the FA. Thus there is well-researched guidance on how strategic powers should be shared between the 2 tiers, the appropriate size of the two tiers, what information should be passed between the 2 tiers etc. This best practice does not appear to have been incorporated into Lord Burns' review.
- There are major issues of governance that are not covered. For example, there appears to be no proposal that the proposed Regulation and Compliance Unit should introduce and monitor a Code of Corporate Governance for its clubs, or that it introduce and monitor a properly rigorous ‘fit and proper person’ test. Both of these are recommendations of the 1999 Football Task Force report and our own The FA: Fit for Purpose? report.
[1] The Higgs Review reported that the average size of Board for listed companies was 7, comprising 3 executive directors, 3 non-executive directors and a Chair.
Overall, The Sports Nexus are extremely disappointed by the findings of this report. We had hoped that the findings would give the FA a big opportunity to bring itself into the 21st Century. Instead it has been advised to adopt a system that is totally ineffective and will do little more that continue the status quo.
Phillip Snape
Director of the Sports Nexus
Notes to editors:
This poll is strictly embargoed until 06.00 on Sunday 31st July 2005
The Sports Nexus is an independent sports pressure group. It is a privately funded non for profit organisation established to give critical analysis to the way sport is run in the UK.
Our Vision and Purpose
To be the independent voice which challenges the structures, practices and accountability of British sporting institutions.
To influence all levels of government to:
# re-establish sport as an essential component of the education system.
# recognise the true value of sport to enhance the health and welfare of British citizens
For further information please go to www.sportsnexus.co.uk or call Phillip Snape on 07801 624 982
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