Leathes Prior’s Sports Team has continued to develop its expertise in assisting football clubs to survive in the difficult economic climate by advising Welling United of the Blue Square South division on its successful conversion to a Community Interest Company. See www.wellingunited.com for further details.
Full Contact’s Dan Chapman, assisted by Leathes Prior corporate lawyer Richard Guthrie, have advised Welling United throughout on their transfer from an unincorporated entity to a limited company which also has CIC status. Believed to be one of the first football clubs to have achieved such status, Welling may now become an example for other clubs to follow.
Richard Guthrie commented: “There is a growing trend for companies who have a real focus on supporting and being supported by their local community to seek CIC status, which is a relatively recent vehicle introduced in 2005 under the Companies (Audit, Investigation and Community Enterprise) Act 2004. Leathes Prior is able to advise companies in all sectors, sporting or otherwise, of the potential benefits of a conversion, taking into account other options such as CASC and charitable status”.
Dan Chapman added: “In an era where, quite rightly, more football clubs are considering passing some or all of their control to their fans, the community, supporters trusts and other such stakeholders it is vital that clubs take proper advice as to the best way to structure themselves. The CIC status was right for Welling United for a number of reasons, and we very much hope it is the start of a new era for this club which already does a lot for its local community. In a time when so many are commenting on the riches which are at play in the upper echelons of the football game, it is rewarding to be involved also in the real heartbeat of the game.”
One of the most notable features of a CIC is that it must operate at all times for the benefit of the community, and it is protected by an ‘asset lock’ which ensures (in the case of a football club) that decisions cannot ever be taken for private gain.
