AFC Wimbledon are at a crossroads

I have been sceptical about the long-term viability of fan owned clubs, recent events at Exeter City seem to confirm this.   Even prosperous fans in south-west London find it difficult to provide the funds needed to compete.

AFC Wimbledon are at a crossroads, squeezed by what many League One and League Two owners believe is unsustainable spending that cannot continue. The fan owners face a dilemma: invite wealthy investors with deep pockets on board, or lose pace with the spiralling costs of running an EFL club.

More than 4,500 of the 7,500-plus owners turned out to vote on Monday night, opting to dilute fan ownership to 50.01 per cent — similar to the model adopted by German clubs — and freeing up shares to sell to outside investors with funds to keep the club competitive.

The club have spoken to about ten potential investors, including a consortium led by their former captain Robbie Earle. Many around the club fear this vote is merely a stepping stone to relinquishing fan control altogether.

Younger fans seem to care less about the value of fan ownership and want the club to find deep-pocketed owners to join the EFL arms race. 

At a packed meeting with the club’s board in February, fans were given sobering numbers about Wimbledon’s future. Their annual losses are about £2million — £4million less than the League One average, and £16million less than the highest.

They have the second-smallest playing budget. In the past five years — three of which they spent in League Two — the club made a profit of £50,000, but the cashflow chart is heading rapidly into the red.

A significant part of the English football pyramid is in a precarious position. Wage inflation — rising by about 80 per cent in two years in League One — is the single biggest squeeze, forced up by clubs such as Wrexham and Birmingham City, who invested heavily to win promotion to the Championship last season.

League One owners have met regularly to devise a new set of financial rules. Executives at Wimbledon have encouraged owners to see sense, but clubs are divided and there are those who want to pump money in as those have before them.

There are also concerns that the Professional Footballers’ Association will mount another legal challenge against further spending limits. Clubs tried to curb spending by voting in a wage cap six years ago, before action from the players’ union forced it to be withdrawn.

Efforts are being made to align League One and Two owners before a potential vote next month. The plan is to reduce the percentage of revenue clubs can spend on transfers and wages, and reduce the amount of equity owners can put in.

As many as 20 clubs in the lower tiers are seeking buyers but “people have realised it’s an unsustainable model”, another club owner says. “The pool of owners is drying up. If existing owners can’t afford to keep a club going, they will go into administration.”