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Football Economy The Business of the Beautiful Game
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From the Record

Southampton FC and the threat of relegation

First reported 9 May 2005

One of four teams will escape relegation from the Premiership next Sunday, but the least likely candidates for survival are Southampton. Given that the other candidates have recent experience of the Championship, the Saints are the club least well equipped to cope with the £12m drop in income after parachute payments. Southampton have not been out of the top division since 1978. The club is bearing a debt of £22.7m because of the move to St.Mary’s Stadium. The loan is secured against future season ticket sales and it is understood that the club has to pay a premium above base rate if they are relegated to compensate for the likely drop in sales. Even in the Premiership, Southampton have seen their average attendance figure slip from 31,704 to 29,862. Games against the likes of Crewe and Watford are unlikely to attract large crowds. Commercial income was already falling this season and operating costs are high. Getting out of the Championship is always tough, as West Ham have found, but the Saints may find it particularly difficult.

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