The Model of Governance at FC Barcelona – S. Hamil et al.

The Model of Governance at FC Barcelona by Sean Hamil, Geoff Walters, and Lee Watson

 In the article, “The Model of Governance at FC Barcelona: balancing member democracy, commercial strategy, corporate social responsibility and sporting performance,” authors Sean Hamil, Geoff Walters, and Lee Watson analyze FC Barcelona’s (Barça) governing body, how it changed after the presidency of Josep Núñez, and how Barça revolutionized the membership-ownership governance that it practices now.

Barça, unlike most English clubs, is not owned by private investors who ordinarily have the power of decision-making and are our to make profit, but is a “not-for-profit organization owned by their members and are not private limited companies.” Hamil’s et al. study answers the question of “how can they afford to compete both financially and in terms of sporting performance when their mutually owned structure specifically precludes the raising of share capital to expand the financial base of their organization?”

Barça owning members, otherwise known as socios, have the power to elect members to the board of directors, including a president, to govern the club over a four-year term—all for the price of an annual fee. Hamil et al. reveal that the board of directors govern more than just the football area, but others sporting areas such as basketball, futsal, hockey, and handball, all including men’s and women’s divisions. The sporting areas are not the only factors that the club oversees. The club also represents the Catalonian society and are responsible for reflecting its cultural identity—hence the motto, “més que un club” meaning “more than just a club.” Hamil et al. try to uncover how Barça maintains its financial status, and remain at the top of the world as one of the best, as nonprofit organization.

Inspired by Spain’s shift to democracy, after the rule of the fascist Francisco Franco, “Catalonia saw a parallel erosion of the democratic rights of the members, or socios, to influence the administration of FC Barcelona” into democracy. Hamil et al. write about the first democratically elected president, Josep Núñez (1978-2000), and his struggle to control the club. He was believed to have challenged the socios rights, stood in the way of Catalan freedom of expression, and gradually undermined the club’s statutes. After 22 years of presidency, Núñez lost his position to Juan Gaspart (2000-2003) who led Barça through an unsuccessful tenure. In 2003, the socios elected Juan Laporta (2003-2008), a Catalan nationalist and lawyer, who later became the most successful president in Barça history.

The answer to Hamil’s et al. question comes from Laporta’s era as president. Laporta’s presidency bore fruit as a result of four key strategies:

1. The prioritization of sporting success: Sign the best players and managers, win titles,
2. The re-assertion of member democracy and improvements in transparency of club governance: Improve communication with the socios. (Monthly updates on developments, statuses, etc.)
3. The implementation of a commercial strategy designed to generate increased revenues: Marketing, merchandizing, increase sponsorship, increasing club membership, etc.
4. The development of an innovative series of corporate social responsibility initiatives: Take part in various philanthropies, increase community involvement, etc.

Rix, Fred. “Dogs Tags for Virtual Sniffing.” Illustration. Technology Review 110.4 (July 2007): 16. Academic Search Premier. EBSCO. [Library name], [City], [State abbreviation]. 14 December 2007. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=25887648&site=ehost-live.

Hamil et al. argue that privately owned clubs, such as Manchester United or Chelsea, can be victim to bankruptcy in an era of economic vulnerability. However, mutually owned organizations, such as Barça and Real Madrid, are examples that allow “the development of teams capable of winnig…or of building a sustainable financial strategy independent of the need for equity/shareholder investment.” The proof, Hamil et al. stress, lies in the success that Barça presented over Laporta’s presidency.

Reflection

I learned quite a lot from this article. I didn’t know that Barça was owned by so many people—precisely 163,000 members—and how much power they have. I also didn’t know that Barça is, in fact, a non-profit organization. So much success came during Laporta’s era. It was really interesting to learn all about how he and his fellow board members strategized this success. It goes to show that having all the money in the world doesn’t always bare fruit.

 

Work Cited

Boyd, Clark. “Dogs Tags for Virtual Sniffing.” Technology Review 110.4 (July 2007): 16-16. Academic     Search Premier. EBSCO. [Library name], [City], [State abbreviation]. 14 December 2007. <http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=25887648&site=ehost-live&gt;.

Rix, Fred. “Dogs Tags for Virtual Sniffing.” Illustration. Technology Review 110.4 (July 2007): 16. Academic Search Premier. EBSCO. [Library name], [City], [State abbreviation]. 14 December 2007. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=25887648&site=ehost-live.