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Posts tagged ‘financial’

Jul 1

Premiership match

Top returns

If you add the turnover of every club in the EPL (English Premier) it has now reached the massive figure of £2.03 Bn.  Next year it is estimated to be over £2.2 Bn.  This market intelligence comes from Deloitte (who else?).  Is it any surprise that these teams search for ways to make token gestures to football further down the pyramid by means of grants!

The 20th Annual Review of Football Finance further announced that the whole European football market grew to a record £13.3 Bn. Constituent ‘slices of the pie’ were: Germany (£1.4 Bn), Spain and Italy (£1.3 Bn) and France (£0.9 Bn). All noticeably less than EPL.  Warning signs continue with EPL wage costs rising by £64M but sales revenues just £49M.  Now there is a record wages to revenue ratio of 68%. 

Returns are on a high yet fundamental flaws in sustainability and financial viability mean a ‘slight wind change’ can sink the ship aka ‘Pompey’ (though with additional excruciating factors).

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 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………..

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