Bill Wilson BBC News business reporter

Trevor Brooking says there is lots of business expertise in the industry

The Football Governance Research Centre says clubs are taking risk management more seriously, and governing bodies are making the game more accountable.

Fans and pressure groups have also been able to make clubs more aware of their responsibilities to communities.

But only 62% of clubs said their boards approved a three-year business plan.

And only a minority of clubs have mechanisms in place to evaluate board performance and the performance of individual directors.

The report State of the Game 2004, has been researched by the governance unit at University of London's Birkbeck College, in conjunction with Grant Thornton.

Over the last three years much of the football industry has moved from a Monopoly board style of management Joe McLean, Grant Thornton

"There is a lot of quality working in the industry," said FA director of football Trevor Brooking.

"We are trying to get the business sector to organise business courses, with accredited recognition, for those wanting to enter the industry."

Director of the report's research, Professor Christine Oughton, said football clubs were a difficult prospect in business terms as success on the pitch was often viewed as being more important than on the balance sheet.

Spotlight on clubs

But she said the combined effects of regulation by football authorities and the legal system, as well as codes of corporate governance, and stakeholder activism, were having an effect on clubs.

"Risk evaluation and board approval of a three-business plan are going up, from less than half of clubs last year to almost two-thirds this year, " she said.

"This may represent a reaction to "Leeds United Syndrome", but there are other factors, such as the threat of point deductions for clubs that go into administration, that may have triggered greater attention to these measures.

"The corporate governance spotlight on clubs may also be having a positive effect, encouraging the introduction of good practice such as these risk evaluation measures."

Former Leeds chairman Peter Ridsdale spent heavily at the club

The FA has stimulated the adoption of a "fit and proper person" test by the FA Premier League and Football League for those wanting to be involved in the running of a club.

"Boards have also had to sign a declaration on various governance criteria, confirming their commitment to the club's long-term future," said Kate Barker, chair of the FA's financial advisory committee.

"They also have to provide a reasonable expectation of adequate resources to meet fixtures over the coming season, and security of tenure for the ground for the next season."

TV riches

The FA is also working on a code of corporate governance for all football club.

At the launch of the report on Thursday delegates also heard that over the past two years football has been finally obeying the basic rules of other businesses, namely by not spending way beyond its income.

That has been brought about in the last couple of years by incidents like the financial melt-down of Leeds United, and spate of clubs going into receivership.

After the formation of the FA Premiership in the early 1990s English clubs seemed to throw the business rule book out of the window.

Lulled by the seeming riches of Sky and ITV TV deals, unsustainable amounts of turnover were spent on player wages, and clubs annually spent way over their annual budgets.

'Wage restraint'

"Many will blame the demise of ITV Digital and players' wages for the financial problems many clubs have found themselves in during the past few years," said Mick McGuire, deputy chief executive of the Professional Footballers Association.

"However often the reason is poor financial management - too often chasing a place, or remaining, in the Premier League and obtaining the riches it brings.

"Often the blame is put on players' wages, but they have adjusted their demands in the last 18 months.

Clubs with listed shares Arsenal (Holdings) Aston Villa Birmingham City Celtic Charlton Athletic Heart of Midlothian Manchester United Manchester City - Ofex Millwall (Holdings) Newcastle United Preston North End Rangers - Ofex Sheffield United Southampton (Leisure) Tottenham Hotspur Watford (Leisure) West Bromwich Albion

"Clubs should simply not spend more than they can earn, be it on wages or other matters."

The stock market is no longer viable as a means of raising money, with many clubs seeing their listed price go through the floor since the heady days of 1997 and 1998.

Previous methods of funding clubs, by borrowing money against projected future TV revenues, or against player and stadium values, are no longer viable

"Over the last three years much of the football industry has moved from a Monopoly board style of management to one that is much more responsible, regulated, and broadly under scrutiny than ever before," said Joe McLean, partner at Grant Thornton's recovery unit.

Co-operative call

However Mr McLean said he was concerned that "a number of clubs don't plan for any problems ahead, they have to demonstrate they are prepared for the eventualities of business life".

He said he worried that the next round of TV deals, in 2007, would see clubs earning less from that avenue, yet they were still budgeting ahead on the basis that their current TV revenues remained.

And he asked if English football would be prepared to introduce measures to make the Premier League - which he said "only two or three clubs could win" - more competitive.

"Otherwise you could have a situation like that in Scotland where the league is won by one of two teams."

Well-known football writer and consultant Alex Fynn said "the heart of the matter is... we have to restructure the game, there has to be one governing body".

However, Michael McGowan, director of Leeds United Supporters Trust, said there had to be more football clubs run as mutuals.

"People with experience of running co-operatives can run clubs efficiently both in business and community terms."