Chesterfield FC in the year 2000; it took Darren Brown just 6 months to break it
Chesterfield supporters are amongst many who suffered due to the lack of a fit and proper person test on anyone who took ownership of a football club. Even though such a system is now in place, its application has often been subject to criticism and does not prevent the new owner abusing his position. An Independent Regulator as recommend by the Fan-led review, is urgently needed and at last, we have a Prime Minister that supports this.
Twenty years ago Chesterfield supporters were put through the ringer by a Mr. Darren Brown.
Prior to his arrival Chesterfield had been bouncing around the bottom two leagues with occasional highlights most notably the FA Cup semi-final in 1997. Many thought that the club had stagnated under the unpopular ownership of Mr. Norton Lea although it was thought to be in reasonable financial health. In May 2000 Lea decided to sell the club to Darren Brown and Chesterfield FC was added to Brown’s portfolio of sporting business’s which included Sheffield Steelers ice hockey club and the Sheffield Sharks basketball team.
Twenty nine year old entrepreneur Darren Brown invested in the team with resultant success on the pitch in the first few months of his ownership. That all changed in January 2001 when the FA’s compliance team effectively raided the club premises to investigate certain financial irregularities.
The FA discovered that Lea had agreed to buy the club for £1.2M, making an initial payment of around £400k which then found its way back into another of Browns companies.
It became clear that Brown’s fraudulent management was widespread. One of their star signings had two contracts one of which stated a lower salary in order to gain a favorable transfer fee at a Transfer Tribunal, gate receipts were under reported (stories of electronics on turnstiles being disconnected), irregularities with players payments. The FA were however lenient, with a 9 point deduction that did not prevent promotion and a £20k fine. Incredible as it sounds, Darren Brown was allowed to continue as Owner.
The end was not far away though and three months later, Browns shares were transferred to an associate, Andrew Cooke and he offered the club to the newly formed (literally days old) Chesterfield Supporters Trust. Under the Trust ownership, and now with The Serious Fraud Office involved, it was revealed that the ground had been mortgaged, there was £2M of debts, another £800k had been taken by Brown to fund an opulent lifestyle, and the list goes on.
Brown received a 4 year prison sentence for his crimes. Chesterfield FC was put into administration by the Supporters Trust.
Ironically, Brown may well have passed the fit-and-proper-person test had it been in place, he had no previous criminal or serious insolvency record.
All football supporters may ask why the FA could not put its own house in order?. Why it has taken the Fan-Led Review to come up with the idea of an Independent Regulator to protect clubs and supporters (the reason clubs exist) from ruthless ownership ?