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Posts from the ‘Football Finance’ Category

Jun 11

Football Book

Deloitte reports

It’s that time again – the birth of “Deloitte Football Money League 2011” report. Now in its 14th year, often an interesting barometer on football finance and good PR for Deloitte!

You can download the Report.  Some key contents:

(1)    The full ranking of the top 20 Money League clubs including total revenues and the breakdown of the three sources – matchday, broadcast and commercial incomes. 

(2)    Feature article assesses each of the three key revenue streams, listing the top 20 clubs for each, whilst comparing and contrasting these lists with the overall top 20.

In the English Premier League (EPL), clubs posted an all-time high with losses of £445M.  This, the result despite generating record income of £2Bn.  Though note with a time lag in reporting the analysis relates to pre-tax losses in financial year 2009-2010. Of the top 7 clubs in EPL only Arsenal made an actual profit! Is Wolverhampton Wanderers the UK’s top football club? 

A Division below, the Championship League shows a similar trend with £133M losses.  There are plans to adopt “in principle” financial rules similar to those designed by European soccer’s governing body, UEFA. This it is envisaged will reduce insolvencies in the game. Watch this space?  Too many ills in my view to expect improved health in English football overnight, without a new and improved ‘medication’!!

May 28

Football Fans S'PORT

Out of pocket

No surprise when latest intelligence suggests that it’s getting more expensive to watch and attend football matches. I read with interest the latest “Virgin Money’s Football Fans’ Price Index” which has said that in the last 24 months prices have risen by more than 36 percent.

Just how much appreciation is there ‘club-wide’ on the state of the economy. Football is just one option as people have to make tough decisions on their discretionary, leisure spend – or not spend at all – as belts tighten and families feel the pain in their pockets. Contrary to fans’ wishes, the mortgage, food and fuel might be necessary priorities when selecting where that hard-earned cash goes.

More than one in four fans will cut back on the number of games they go to this season as the UK’s economic slowdown spreads to football. Promotional offers, loyalty schemes, discounts and tiered pricing will be evaluated and implemented for the ‘original’ fans. Yet the ‘prawn sandwich brigade’ may buck the trend and prop up other revenue streams.

QPR has put up prices by 40 percent next season as they return to the top flight of English football. Manchester United’s top price season ticket has hit £950 for just 19 games and fans must pay extra for domestic cup and European competitions. Surely, there’s potential, especially lower down the leagues, for an innovative approach to ticket pricing and other match day purchasing? I’m available if anyone wants to talk.

FC United continues with its “name your price” strategy on season tickets: radical but with some success.

May 14

Oldham Athletic 2004

Get your houses in order!

Today, Terry Venables (ex-England Manager) suggests in a ‘red top daily’ newspaper, that the current system of protocol and penalty against teams that enter financial administration is in need of an overhaul.  He goes on to stress that the only people that suffer are the fans.  In my experiences the suffering of supporters would always be an objective to minimise.  After all, it is not they who are usually to blame (unless perhaps they have been the owner running the club at that time). 

However, a stringent and rigorous punishment needs to prevail.  All too often I have witnessed mis-management by supporters that have been elevated to a Boardroom setting without having the skills or commercial acumen.  It takes more than just keeping the faith to succeed, football is a business not just a game.  The alternative misdemeanour, to poor supporters’ stewardship of these businesses, is that the wrong ‘white knight’ has been in place, whom should never have ridden over the hill nor even perhaps have got on the steed in the first place – or a similar ego driven appointment where an owner has passed his/her shelf-life and maybe lost interest – something that fans don’t often do. They say after religion that football is the next strongest ‘brand’ for loyalty. 

Barry Hearn who runs Leyton Orient has indicated rather than a ten points deduction for clubs that go into administration that demotion by two leagues be more appropriate.  Whilst, I don’t agree entirely, the sentiment I share is that ‘these clubs’ have failed and should face more severe sanctions than present.  At least this may go someway to ensuring that more football clubs get their houses in order.

If only, the likes of Stockport County, Chester City, Oldham Athletic had had better leadership the financial woes may not have materialised.  Maybe well run, fans-owned clubs will continue to be another way for the future aka FC United of Manchester, City Fans United (phoenix for Chester City) and AFC Wimbledon.  Certainly, this is a philosophy that Supporters Direct subscribes to.  Watch this space………..

May 9

Spoonful of sugar makes the medicine go down
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Spoonful of Sugar

BBC’s coverage of football titled “Lord Sugar Tackles Football” was aired last night.  You can get a repeat performance on the BBC iPlayer (though apparently it doesn’t work worldwide).

I missed it ‘live’ but caught the repeat performance.  Must say that I felt the programme to be somewhat academic.  It emphasised basics of running a business which we all know have been ignored by many a football club.  Furthermore, it came across as a TV production made for entertainment without any real delving or investigative stuff – just headline stories and stats.  The simple facts of ‘financially keeping ones house in order’ was once communicated accurately at a Stockport County FC fans forum (post mortem) by a member of the Parfett’s family. It’s like a former colleague said to me, “Adrian, the problem with common sense is that it just isn’t common”.

One thing clearly apparent is the game has moved on, becoming a complex maze of commercial forecasting and debts accelerated, since Lord Sugar’s time as Owner of Tottenham Hotspur FC.  Lord Sugar sold his majority stake at Tottenham to ENIC (leisure group) for £47 Million.  He has described his time at that club as “a waste of my life”.

We were reminded of the £800M purchase by Glazer’s of Manchester United FC, with “extreme borrowings”.  Long live FCUM.

Surprised that Harry Redknapp said he didn’t know the wages of any players at his club. Karen Brady was an articulate contributor to the show and I always thought her to be a plausible candidate for a top job at the Football Association.

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