Fans deserve to know who runs their club, warns football chief

Representatives of all 72 member clubs are meeting in Derby this morning and the main topic on the agenda will be the proposed new solidarity payments from the Premier League.

The deal, which was passed in principle last May, will see increased parachute payments for clubs relegated from the Premier League and enhanced annual 'solidarity' payments being handed to the other Football League clubs.

However, one of the conditions attached to the offer by the Premier League is that the Championship rulebook be aligned with its own, meaning all clubs in the second tier must adopt the same strict rules on transparency of ownership.

At present, all top-flight clubs must publicly declare any individual owning a stake of 10 per cent or more on their official website.

Football League chairman Clarke exclusively told the Yorkshire Post: "I believe transparency is important for one major reason, and to illustrate that reason I like to compare a local football club with a pit in a mining village.

"If the village loses the pit, it leaves the villagers devastated. It is the same with the local football club and the impact it would have on that town or city.

"People, therefore, need to know who is running the pit and where they have come from. Every fan wants to know their club is in good hands and we are trying to put that information in place."

On the adoption of Premier League rules on transparency of ownership, Clarke added: "While the Premier League and Football League have small differences on the big stuff, in terms of many things we have a lot of common ground.

"It is important that we work together. For instance, we are looking to adopt the Premier League thinking on ownership matters and transparency, while the Premier League are moving towards our 'Fit and Proper Persons Test' for directors and officials."

Current Football League rules state clubs must provide details of their owners to enable them to pass a 'Fit and Proper Persons' Test' but that this does not then have to be made public.

Leeds United, under the chairmanship of Ken Bates since 2005, are one of the clubs whose ownership has been shrouded in mystery.

Last season, the club were asked by the League to clarify the identity of their offshore owners to satisfy the 'Fit and Proper Persons' Test', which they duly passed in February.

No further details were made public but the Yorkshire Post can reveal Leeds have since outlined the make-up of their ownership structure on the club's official website, if not the ultimate identity of the individuals involved.

In the recent post on the site, it is revealed how the club is owned by Leeds City Holdings Ltd, a company that has five shareholders. The majority shareholder is Forward Sports Fund, which holds 72.85 per cent of the shares.

On the push for transparency among all 72 members, Football League chairman Clarke added: "If adopted, clubs having to declare who owns them will be implemented in time for the next season (2011-12).

"What I will say to supporters is the information you get may be more confusing than when we started. That is because when you are talking about overseas ownership and trusts, it can be a complicated area.

"An average fan in the street may be none-the-wiser by what is revealed. They may look at them and be puzzled."

The proposed deal will see the Premier League use its improved 3.1bn television deal for 2010-13 to pay increased parachute payments of 48.4m over four years to each relegated club.

Hull City will be among the first beneficiaries providing agreement is reached today, an initial payment of 9m being due to the East Riding club on Friday.

The proposals have, however, sparked controversy with some Championship chairmen such as Doncaster Rovers' John Ryan claiming it will lead to a two-tier competition with teams newly-relegated from the Premier League having a distinct advantage. Others in Leagues One and Two feel the 80 per cent of the new solidarity payments destined for Championship clubs is unfair compared to 12 and eight per cent, respectively, to the bottom two divisions.

League chairman Clarke said: "There are two big issues here, the parachute payments and solidarity payments. Getting in excess of a 200 per cent pay rise in difficult economic conditions is a good result.

"The flipside is that these big payments could distort the competition and I understand many feeling this to be unfair. But if the alternative is clubs going out of business then I believe there is no decision to make.

"The priority has to be keeping those clubs in business, and that means getting this deal done and accepted – even allowing for a degree of unhappiness.

"It will allow everyone to plan accordingly for the future by putting in place our commercial revenue streams for the next year. It will also mean clubs can get their first payment."

LEEDS REVEAL THEIR SHARES STRUCTURE

Leeds United are, according to the club's official website, owned by Leeds City Holdings Ltd, a company that has five shareholders.

Four of these account collectively for 27.15 per cent of the shares with the majority shareholder being Forward Sports Fund (FSF Ltd), a company originally registered in the Cayman Islands but now having since moved to the Caribbean island of Nevis. They have 72.85 per cent of the shares.

FSF Ltd has 10,000 shares split between three independent trusts.

Two management shares with full voting rights were issued by the legal owner of the FSF shares, Chateau Fiduciaire. These are held by Patrick Murrin and Peter Boatman on behalf of United chairman Ken Bates.

None of these three are beneficiaries of FSF Ltd. All have passed the Football League's 'Fit and Proper Persons' Test'. The management and control of the football club was placed, by FSF, in the hands of Murrin and Bates.

The article detailing the ownership structure has been posted on the official Leeds United website.

Previously, information regarding ownership of the club had only come via the club's official accounts, despite calls from some fans to publicly reveal the identities of those men running the club.