What is the recommended company type for a football club?

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Morning

Some neighbours and I are trying to form a new football club, and the time has come to incorporate it as a proper company. What type, though? We’re half-decent managers, I should think, but we’re all very new to this company business.

Thank you for your assistance

Michael Watkins

Answers

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Hi Michael,

The most suitable company type for your football club is a limited by guarantee company because, presumably, this will be a non-profit social enterprise that is run for the benefit of the local community?

You won’t have any shares in this type of company, but you will need at least one guarantor. This person (or people, if you have more than one guarantor) must agree to form the company and guarantee a nominal sum of money. The guarantee only has to be paid if the business can’t pay its bills. This is nothing to be concerned about - most people just guarantee a sum of £1.

Now, if you’re aiming for the big leagues, you might prefer to set up a company limited by shares. This will allow you to raise capital by selling shares to outside investors, but it also means you will have to give these shareholder a portion of any profit you make.

a year ago
 

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