This included £1.9 million which was transferred from the charity’s bank account to a trade union, The Professional Footballers’ Association, without adequate explanation or governance.
Additionally, the charity allowed the union to occupy its properties rent free, some for over a decade, resulting in significant financial loss to the charity.
Both the £1.9 million, plus interest, and the outstanding rent plus interest (£627,000) were subsequently repaid to the charity during the inquiry once the Commission had raised concerns.
The Chief Executive and Director of Finance at the connected union were also trustees of the charity. The Commission’s intervention ensured that their remuneration was transparently disclosed in the charity’s accounts as related party transactions, which was not previously the case.
As a result of these and other findings relating to the charity’s relationship with the trade union, the regulator issued an Official Warning to the charity on 7 September 2022 for mismanagement that had taken place from its incorporation in 2013 to the beginning of 2019.
It also disqualified a trustee, Darren Wilson, from being a trustee or holding a position in a charity with a senior management function for four years.
The charity and the union are now more clearly separate.
Background
The charity, which was formerly known as The Professional Footballers’ Association Charity, supports current and former professional footballers.
In November 2018, the Commission opened a regulatory compliance case to explore concerns about the charity’s relationship with a connected trade union, The Professional Footballers’ Association, its management of conflicts of interest and the trustees’ ability to act in the charity’s best interests.
Funding a trade union is not considered a charitable purpose in law.
Following extensive engagement with the charity, the Commission’s serious concerns led to the opening of a statutory inquiry in December 2019.
Key findings
The inquiry uncovered a pattern of poor oversight and financial mismanagement that put charitable funds at risk over several years. It found that
- Through a longstanding but informal arrangement, the charity paid approximately 80% of the trade union’s annual operating costs – around £6 million annually, including £5 million on union staff salaries. In return, the union provided coaching and training to further the charity’s aims. This arrangement operated for years without any contractual agreement, proper review, or value-for-money assessment until the Commission raised concerns in April 2019.
- £1.9 million of funds the Football Association deposited in the charity’s bank account was transferred from the charity to the union in two separate transactions, without a clear explanation for the action. In the report, the Commission is highly critical of trustees’ failure to spot the huge reduction in funds during their reviews. The funds plus interest were only returned after the Commission raised concerns. Subsequently, an alternative explanation was provided by trustees, who suggested that the funds belonged to the union but were held by the charity pending confirmation of their donation to the charity by the union. The inquiry found that the changing explanation provided regarding the £1.9 million demonstrated poor financial management and controls at the charity.
- The charity owned several properties in Manchester and London and allowed the union and its trading subsidiary to occupy these rent-free for several years. When interest was included, this cost the charity over £627,000 in unpaid rent, which was subsequently repaid after the Charity Commission’s intervention.
- Multiple trustees held positions within both the charity and the trade union – two trustees held senior union salaried positions, whilst three others sat on the union’s Business Advisory Committee, which set salaries for union staff. This created inherent conflicts of interest, particularly as the charity funded union salaries to the sum of £5 million annually.
- The charity also failed to properly disclose related party transactions in its published accounts, reducing transparency for the public and regulators. Whilst trustees placed reliance on professional advisors, they failed to fulfil their fundamental duty to actively oversee and review the charity’s operations and relationships.
Regulatory action
As a result of the inquiry’s findings, the Commission has taken the following action
- One trustee, Darren Wilson, has been disqualified from being a trustee or holding a senior management position in any charity for four years after the Commission found him responsible for misconduct and/or mismanagement in the administration of the charity. At the time of his trusteeship, he was also Director of Finance of the union. The inquiry found he had a greater culpability than the other trustees, due to his role as a qualified director of finance. The Commission took action to suspend Mr Wilson as a trustee until any disqualification took effect. Mr Wilson appealed against his suspension and disqualification, resulting in hearings over the course of several years, with the appeal. ultimately withdrawn in January 2025. The period of disqualification is ongoing and will end on 14 August 2027.
- The Commission issued an Official Warning in September 2022 to the charity for mismanagement during the period from when it was incorporated in 2013 to the beginning of 2019.
- Remedial actions have now been implemented at the charity, including proper separation from the union, appointment of new trustees, and establishment of a distinct identity for the charity. It has also adopted a new funding model, after the Football Association and Premier League stopped funding of the charity upon its separation from the union.
Angela Ascroft, Critical Case Lead at the Charity Commission said
In this case, the lines between the charity and Professional Footballers’ Association union were blurred beyond distinction, resulting in the multiple instances of conflict of interest and mismanagement at the charity.
Charity trustees have a duty to act in the best interests of their charity, but trustees at the Players Foundation fell dismally short of this expectation and, as a result, let down the players they were supposed to be helping.
The Charity Commission’s extensive regulatory involvement led to the disqualification of trustee Darren Wilson. Since then, the Players Foundation is more separated from the union and can now focus on helping those it was set up to serve.
The full inquiry report is available at gov.uk
ENDS
Notes to editors
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The Charity Commission opened the inquiry into the charity, under section 46 of the Charities Act 2011 On 20 December 2019.
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The Commission disqualified one trustee, Mr Wilson, from being a trustee or holding a position in a charity with a senior management function for a period of 4 years in accordance with section 181A of the Act. Mr Wilson was a trustee of the charity and the director of finance of the union during the period in which the events and decisions referenced in this report occurred and, as a result, was disqualified for his role in the mismanagement identified above. The inquiry also used its powers under section 181B(4) of the Act to suspend Mr Wilson from being a charity trustee until any disqualification took effect. Mr Wilson appealed against his suspension and disqualification, resulting in hearings in the First Tier Tribunal (Charity) and the Upper Tier Tribunal over the course of several years. His appeal was ultimately withdrawn in January 2025. The period of disqualification is ongoing and will end on 14 August 2027.
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The Commission issued an Official Warning to the charity on 7 September 2022 for the collective mismanagement by its trustees as described in this report. The trustees sought permission from the Commission – which was refused – and then the High Court to institute proceedings in pursuit of a declaration under s.1157 of the Companies Act 2006 that they should not be held responsible for the mismanagement cited in the Official Warning. The application was unsuccessful after a hearing it was refused by the High Court in July 2022.