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Pros and cons of football club structures – A quick reference guide

3 October 2025October 13th, 20255 min read

Unregistered clubs (unincorporated associations)

Pros:

  • Free and quick to set up with no registration required
  • Very flexible – you can change your rules easily
  • Minimal paperwork and no annual filing requirements
  • Perfect for small clubs just starting out

Cons:

  • Committee members personally liable for debts and contracts
  • Club can’t own property or sign contracts in its own name
  • Difficult to secure grants or bank loans
  • Individuals could be personally sued if something goes wrong
  • Assets must be held by individuals rather than the club

Registered CASCs (community amateur sports clubs)

Pros:

  • 80% business rates relief saves significant money
  • Gift Aid on donations brings in extra income
  • Corporation tax exemption on qualifying income
  • Recognised status that funders understand
  • Keeps amateur sport at the heart of your club

Cons:

  • Membership fees capped at £1,612 per year per person
  • Playing costs limited to £520 per year per person
  • Total player payments restricted to £10,000 per year
  • Income limit of £100,000 from trading and property
  • Locked in once registered – leaving triggers tax repayment
  • Doesn’t provide limited liability unless you also incorporate
  • Amateur requirements may limit club development

Community interest companies (CICs)

Pros:

  • Separate legal entity can own property and sign contracts
  • Limited liability protects individual members
  • Asset lock ensures funds benefit the community
  • Access to community-specific grants and social investment
  • Quicker to set up than a charity
  • Can still make profits and pay dividends (capped at 35%)

Cons:

  • No charity tax benefits
  • Can’t access many charity-only grants
  • Extra annual CIC report required
  • Asset lock permanently restricts how you use assets
  • Less well-known than charities to some donors
  • Difficult to convert to other structures later
  • Additional governance requirements

Charities (including CIOs)

Pros:

  • Maximum tax reliefs including Gift Aid and business rates relief
  • Access to the widest range of grant funding
  • High level of public trust and credibility
  • CIOs provide limited liability without company registration
  • Well understood by donors and funders
  • Larger donations attract tax benefits for donors

Cons:

  • Charity Commission regulation adds administration
  • Strict rules on permitted activities
  • Trading for profit may need a separate subsidiary
  • Annual reporting to Charity Commission required
  • Must continuously demonstrate public benefit
  • Complex process to change purposes or wind up
  • Higher governance requirements than other structures
  • May need to limit social club activities like bars

Limited company (by shares)

Pros:

  • Separate legal entity with limited liability
  • Can raise investment capital by selling shares
  • Clear ownership structure attractive to investors
  • Professional image for commercial partners
  • Shareholders can receive dividends from profits
  • Well-understood by business partners and banks

Cons:

  • Not suitable for typical community grassroots clubs
  • Shareholders expect returns, not community benefit
  • No access to charity or CASC tax benefits
  • Doesn’t align with grassroots community ethos
  • More complex to manage than other structures
  • Can’t access community-focused grants
  • Annual Companies House filing requirements

Limited company (by guarantee)

Pros:

  • Separate legal entity can own property and sign contracts
  • Limited liability protects individual members
  • Democratic member control of the club
  • No shareholders taking profits from the club
  • Can combine with CASC or charity status
  • Professional structure recognised by funders
  • Assets belong to the club, not individuals

Cons:

  • Setup requires professional advice and has costs
  • Annual accounts and returns to Companies House
  • More formal governance requirements to follow
  • Constitution changes need Companies House approval
  • Time needed to transfer assets from unincorporated club
  • Ongoing compliance costs every year
  • More paperwork than unincorporated structures

Key decision factors:

Choose incorporation if you:

  • Employ staff or plan to employ people
  • Own property or significant assets
  • Enter into major contracts regularly
  • Need to borrow money from lenders
  • Want to protect committee members from personal liability

Add CASC status if you:

  • Want business rates relief (saves significant money)
  • Need Gift Aid income from donations
  • Plan to stay amateur and community-focused
  • Have affordable membership fees and playing costs
  • Meet the £100,000 income limit

Consider charity status if you:

  • Have exclusively charitable purposes
  • Want access to charity-only grants
  • Can demonstrate clear public benefit
  • Have capacity for Charity Commission governance
  • Want maximum tax benefits and donor confidence

Look at CIC structure if you:

  • Run community programmes with trading income
  • Want social enterprise identity
  • Need access to community investors
  • Don’t meet charity requirements
  • Want asset lock without full charity regulation

Popular combination for grassroots clubs: Limited company by guarantee + CASC registration = legal protection + tax benefits

Sources: GOV.UK guidance on CASCs, CICs and company formation; The Football Association club structures guidance; Charity Commission guidance; legal resources from various solicitors