Football is a Global phenomenon that unites millions across Continents.

It impacts countries, lives, families, children, teenagers, adults, different industries, provides good (and bad) examples, promotes peace and strong values for communities to prosper.

However, before we can celebrate during goals during matches, there’s a complex web of Governance Structures that ensure the Sport’s integrity, fairness, and growth.

Football also feeds a lot of people, metaphorically in their dreams and pursues, but also in different industries surrounding the Sport.

Therefore, what is Governance and why is important to talk about it now?
Are there levels?
Why do you need to know this?

Well, to answer this, I have to explain (again) the importance of Theory, clear rules and territories to face action.

I’ve may mention this to you before, but Theory has became a greater part of my understanding of how things work and the importance of having a Theory behind everything we do.

From Coaches preparing your Annual Planning, your Exercise Notebook, your Sessions, your meetings with Players individually or collectively, to an Institution to have all Planned and Processes Organized in order to move ahead to achieve their goals and objectives, Theory is key.

Regarding Governance, specifically, from the apex body, FIFA, to local Clubs, each stakeholder plays a pivotal role in football’s landscape and here I intend to present you, first, the Football Structures in a global perspective and then merge it with the Club’s reality.

To start, the question is: what is Governance?

The definition is that governance is “how an organization is governed. In other words, the system by which an organization operates, how it takes decisions, and how people are then held to account for those decisions”.

From here, we can understand concepts as:

. Accountability

. Checks and Balances

. Democracy

. Transparency

. Separations of Powers

. Diversity and Integrity

. Compliance

FIFA

At the helm of football governance is the Federation Internationale de Football Association (FIFA). Established in 1904, FIFA has a set of Statuses – the most important documents – describing the Purpose, Regulations, Decisions and how Regulations are applied. The organization oversees international competitions, sets the Laws of the Game (along with IFAB), and has the biggest purpose to promote Football Development worldwide. 

In recent years, FIFA has undertaken significant reforms to enhance transparency and accountability. 

Notably, the separation of Strategic functions from Management roles has been an important element of these reforms, aiming to foster a Culture of integrity within the Organization.

The difference between Continental and National Bodies

Beneath FIFA, Continental Confederations like the Union of European Football Associations (UEFA), South America with CONMEBOL, North America with CONCACAF, Oceania Football Confederation (OFC), African Continent with CAF and, finally, the Asian Football Confederation (AFC) are there to guarantee Governance in different contexts. 

These bodies, are responsible to organize continental tournaments (ie. Champions League or Euro Cup, World Cup Qualifiers, Friendlies, etc), Clubs Licensing, Coaches Education and collaborate with National Associations to implement FIFA’s directives. 

As a side note, it’s important to mention that although the Confederations are not considered members of FIFA, they are recognized by it.
Additionally, there’s an extra layer at some Confederations, the bigger ones as Africa and Asia, with Regional Associations working together to elaborate competitions within the regional parameters, as the recent Arabian Gulf Cup in the region.
The FA’s, or National Associations or Federations, in turn, manage domestic Leagues, national teams, Referee Committees, Professional Players Committee, as others, and grassroots initiatives in their own country borders.
Is important to mention that, always respectful to each levels, all the stakeholders are primarily responsible of ensuring that the Sport thrives at every level, just as their responsibilities included basic legislations to guarantee the Principle of Promotion and Relegation at each Competition and to create a safe environment, mainly establishing clear rules for Doping Control, Integrity, Corruption, etc.

Leagues and Clubs

Professional Leagues, such as the English Premier League, operate as corporations owned by member clubs, and they may be separated (although always connected and recognized) from the National FA’s.

In Portugal, for instance, there’s an Organization – Liga Profissional de Futebol – that is responsible for the Organization of the 1st and 2nd Professional Divisions, and League Cup. 

On the other hand, is the Portuguese FA – Federaçāo Portuguesa de Futebol – responsible to organize the Portuguese Cup and all the other levels of National Football, from Male Senior National Divisions 3 and 4, Female Football and Youth.

Each club, as a member of National FA’s, holds a vote on critical issues, fostering a democratic approach to League Management, ensuring that Clubs have a significant say in decisions that impact their Operations and the League’s direction.

Players, Coaches, Directors, Presidents and all the other participants

They are the main artists.

The one’s enjoying the above structure and organization to fulfill their dreams and provide spectacles to the fans.

Their role is, therefore, crucial as it all starts (and ends) with them.

Without them, there’s no Football.

Internal Club Governance

My guess is that, by now, Governance is clearer to you.

Truth to be said, within clubs, effective Governance is paramount. 

A well-defined internal structure typically includes a Board of Directors responsible for strategic decisions, financial oversight, and ensuring compliance with both national and international regulations.

Below these functions, there are several Departments, interconnected between each others, and directionally guided by the Vision and Mission of the Club and accountable to implement Strategic Planning defined.

As a result of the before-mentioned relationship between Club Management and Governance Structures directly influences on and off field Performance, Financial Health and, consequently, Stakeholder trust.

At this stage, it should be important for us to understand different elements at each Club, understanding the Leadership, the Vision, Mission & Objectives, the Organizational Chart, the responsibilities, the control system and processes applicable to guarantee the results are there.

Everyone should be accountable to the final results at each Department, respectively, but with the clear idea about the Vision, Mission & Objectives defined.

Working as an unit is always powerful, and people must embark on the journey together.

Multi-Club Ownership: the new phenomenon

Something very exciting to the World of Football, from the business side to the action on the field, and that is becoming a regular trend is Multi-Club Ownership (MCO).

It’s a Strategy that is very connected to other Sports, just as with Governance Principles mentioned before, mainly in USA with the Franchise Models developed into a globalized approach, with many other benefits that I will delve into more detail shortly.

Why?

Well, to start, because it boosts interest in Football, bringing more methods, investments and greater minds to promote the Sport. 

Interestingly, on an industry that is often defined as financial bankrupted by origin, dark and with lack of values, it’s great to see that there are people out there bringing a fresher and competitive environment, but mainly, that belief that Football can be different for the better.

Better strategies, better results (on & off the field), promote the right values, provide entertainment.

To understand Multi-Club Ownership we must start at its origin in Football, with the most known examples being the City Group and the Red Bull Group.

The definition of MCO refers to a Model where a single Entity or individual owns multiple Football Clubs across different leagues or countries.

The City Group includes Clubs as: Al Jazira (UAE), Manchester City (England), New York City FC (USA) or Girona (Spain), among others, whereas the Red Bull Group includes RB Leipzig (Germany), Red Bull Salzburg (Austria), Red Bull Bragantino (Brazil) and New York Red Bulls (USA), for instance.

These are only 2 of the most known (and older) examples, but there are many others now becoming famous and with great results.

So, why does this strategy is gaining more popularity in the World of Investments?

For those that have the ability to reach a global landscape, this Strategy promotes Integrity – as an example, UEFA is not allowing Clubs with the same owners to participate in the same National Competition – and provides the ability to dilute costs throughout the Organization as a whole, in Scouting, Coaching Staff or Player Development.

Additionally, this Strategy helps in:
. Talent Pathways – transfer between Clubs and Levels are easier to promote and create strategies around each player

. Diversification – reduces Financial risks by spreading Investments across Leagues, geographies and markets.

. Brand Expansion – mainly focused on Global visibility and revenue opportunities for the Group and individual Clubs.

Other elements could be explained here, however I believe a generic idea is already provided.

From here, the main concern must be in understanding how Clubs and Directors should position themselves as attractive opportunities for these Groups, taking their local advantages and efforts to a sustainable and profitable strategy for the future.

Here, as in any other business, it’s very important to have all organized within the Club, prepared to create synergies with other stakeholders and potential shareholders of your Club.

If you reach this part, you understand now the importance of Governance, I hope!

It’s really important for us to reflect on why Governance is so important, why there are structures, processes, laws and regulations for things to have their natural development, and if looking for growth, we must be ready to present our project to other interested parties.

As a final note, there’s an element of reflection within the Clubs that, perhaps, is important to pause and reflect upon – the Players role.

Nowadays, Players have a pivotal role in all the industry dynamics, but this may be something we need to reflect.

Although players should be the centre of the Clubs Youth Methodology, without a doubt, they enjoy the entire Organization above, from Directors to Coaches and all the other Departments.

And all these Departments, although there for the Players, they are prior to the field action and need to be as recognized as important as the ones scoring the goals – the Players.

At least internally.

If we can create an environment where everyone stays humble and work towards the same goals and objectives, it creates the right environment to prosper!

What is your experience on these matters?
Let’s discuss!