On Friday, November 1st, I was invited, as a member of the Fans’ Advisory Board to the Fans’ Parliament. Also, Trust Board Member Gareth Williams was invited as one of the season ticket holders. It is his notes that form the basis of this email and I am grateful for his efforts in preparing a record of the meeting. After the meeting, I was able to get further clarification on what was said from senior staff and management of the club.
This event is part of the club’s consultation with fans. It runs in parallel with the Fans’ Advisory Board which deals primarily with strategic and corporate governance issues and the Supporters Liaison Group which deals mainly with match day and travel issues. The Fans’ Parliament is intended to give fans the opportunity to question the senior management of the Club on any issue. The 3 levels of consultation go a long way in satisfying the club’s obligations in respect of the Fan-Led Review of Football Governance.
Of the 100 season ticket holders invited, approximately 40 fans attended. I got the impression that the club was disappointed that so few were able to attend. The club on their part had assembled Chairman Mehmet Dalman, CEO Ken Choo, the Head of Finance, and all heads of departments throughout the club and arranged presentations from those heads of departments in respect of their areas of operations within the club.
The presentations painted a positive picture of the club’s activities both on and off the field of play which demonstrated that they were looking to engage with fans and the wider community. These presentations were then followed by open questions from those present towards the various club departments. The following main points were made.
- Financial Position of the Club – It was stated that the club continues to be compliant with the current Profitability and Sustainability requirements both for season 2023-24 and this season (which was confirmed in separate discussions with the Finance Director). Adjusted losses need to be below the figure of an average of £5m per year which can rise to £13m if the extra £8m is put in as more share capital. Continuance of this situation will ensure that transfer embargos and points deductions will be avoided.
It was also stated at the meeting that, effectively, the club was debt-free given that it was owned by Vincent Tan and the vast majority of the listed debt was actually owed to the owner.
This claim by the club is not entirely accurate and I sought clarification after the meeting. What should have been said is that all of the club’s debt in material terms is due either to owner Vincent Tan or to Tormen Finance, a company in which club chairman Mehmet Dalman has a significant financial interest. Therefore, there are no other outside parties who could or would demand repayment of debts.
Before the meeting, I was able to ask the Finance Director and Ken Choo about the impact on the club of the recent budget. He stated that a significant impact, especially in relation to the increase in Employers’ National Insurance contributions would be felt, requiring realignment of budgets in order to remain compliant with Profitability and Sustainability.
It was stated that the club is in a better overall financial position than many other EFL clubs.
I have looked at a number of Championship clubs’ latest filed accounts and many show losses above our levels before selling off players at a big profit so underlying losses for them appear to be worse than ours.
- The Club’s possible participation in the “Welsh Cup” and European entry. Ken Choo stated that he was in favour of exploring the possibility of entering the new competition as he feels obliged to examine all potential income streams. However, he was pressed to confirm that he would not pursue it if there was any risk to Cardiff City’s place in the English Football Pyramid. Ken Choo confirmed that he would not pursue the issue if that was the case.
The Trust view is that there is little benefit in entering such a competition in the hope that, if we were to win it, we enter a European Competition. The EFL and IREF (the Football Regulator when appointed) have the power to stop us or impose unacceptable restrictions. EFL Clubs would probably object if we have a route to Europe (and an income stream) not available to them.
- Fans’ Advisory Board (FAB) – It was stated that the Club was leading the way in engaging with the FAB on a regular basis and we were one of only 5 Championship clubs to have an active FAB.
I think it is fair to say that Cardiff City is ahead of most clubs in having an FAB. It is not perfect in the early days of operation but the Trust Members on it are working on improving this. The Fan Engagement Policy, submitted to the EFL (on the club website) as they were obliged to do in the Summer, is a good document which other clubs are using as a template. Those Clubs who missed the Summer deadline are non-compliant. Whatever implementation issues there may be, research of other Clubs show that CCFC has more engagement meetings than most other clubs at our level.
- Engagement in the Community – As part of the 125th anniversary they are aiming at 125 community engagements involving schools, communities etc. which will involve players and staff in promoting football, the community and the club.
- Attendance in the Family Stand – Concern was expressed by the club about the large number of “no-shows” at games. It was stated that due to a good deal more 12.30pm KO many children were actually playing their own junior Saturday morning football which affected their attendance, this is an issue which is, of concern to everyone however there are difficulties which are yet to be resolved.
- Atmosphere at matches and fan behavior – Concern was expressed over the current set up for home and away fans, the club stated that they were one of the first clubs in the country to introduce “Safe Standing areas” and were always keen to respond to fans concerns, however, there were no current plans to change the present set up within the stadium.
It was stated that fan Behavior was generally of a high standard throughout but any racist or other forms of abuse would not be tolerated and would lead to stadium bans and prosecution when appropriate.
- Alcohol on the Terracing – The question was asked as to the club’s view on supporters being allowed alcohol on the terracing. Concern was expressed about the incidents being reported from Rugby (Principality Stadium) surrounding negative impacts on fellow supporters with alcohol in their seats. Wayne Nash stated that he had had discussions with other EFL Clubs and ground safety authorities and said that he would not be against it in principle if fans wanted it. The Trust board has not taken a view on this matter but would consult its members if it became a proposal.
- The Court Case with Nantes FC –it was stated that the club’s case against Nantes was progressing and the club were confident on the outcome. It is hoped that there will be some progress in the coming months. I have discussed the matter with the club’s legal advisors and hope to be able to update members in detail in the very near future.
- Away Tickets issues – It was stated that CC ticket office was making all efforts to secure mutually favourable prices for away fans both at CCFC and away grounds. It was stated that some Championship clubs namely Sheff Wed and Leeds were very resistant to reasonably priced tickets for fans much to the frustration of CCFC ticket office and fans alike. Concerns were raised about disabled access and pricing on away matches which was not in the control of the CCFC.
- Cardiff City Academy– It was highlighted that the Academy was now achieving better outcomes and as a level 2 academy was now amongst the best in the country. It was noted that a number of academy players were either breaking into the first team or on the verge of doing so. The club had made great strides in obtaining better quality loans for up and coming young players as an aid to their progression. A very positive picture was emerging on this area within the club.
- Player Recruitment – The new head of recruitment outlined that they were now adopting a data-led approach to the recruitment of players. It was also stated that, using this approach they were looking to recruit improved longer-term transfers and move away from short-term loan players, due to the increasingly expensive cost of loan players especially from Premier League Clubs who ask clubs for, not just the cost of all wages, but also an additional premium as well as a substantial loan fee.
- The Current Manager Recruitment position was raised – Omer Riza was present at the meeting and was very respectful to all those present. It was fully recognised that things had greatly improved under his interim management. When asked if there would be a quick decision regarding the managerial position Mehmet Dalman replied with a simple “No”.
- Strategy– when asked by those present what the club strategy is the reply was to retain a competitive position at our current level in the short term but with gradual consistent improvement on the field with the aim of being an established Premier League team in 5 years.
In summary, it was a very informative evening where the operations of the club were laid out for fans to see, it should be noted that this forms the basis of good engagement with club and Fans hopefully moving together in a positive manner.
Keith Morgan
Chair