The finances of Scottish football clubs are in a worse state than those in England according to a survey by Begbies Traynor. However, the English figures may be distorted by the fact that clubs are in a relatively favourable cash flow position at this time of year, having banked revenue from season tickets, sponsosrhip and up front television payments. The real crunch comes in the spring and early summer.
The finances of Scottish football clubs are in a worse state than those in England according to a survey by Begbies Traynor. However, the English figures may be distorted by the fact that clubs are in a relatively favourable cash flow position at this time of year, having banked revenue from season tickets, sponsosrhip and up front television payments. The real crunch comes in the spring and early summer.
Begbies Traynor found that six of the top 32 clubs in Scotland’s top three tiers are in financial distress, two more than were reporting acute problems six months ago. In contrast, English clubs are looking healthier with only two out of the 72 clubs in the three tiers below the Premier League reporting severe difficulties, compared with 13 in April. One of these is Portsmouth, which is in administration.
Ken Pauttullo of Begbies Traynor told the Financial Times attributed part of Scotland’s financial problems to Rangers’ relegation, but said that lower television attendances and reduced television income were also adding to clubs’ financial problems.
Neil Patey of Ernst & Young argues that it need not be Armageddon for Scottish football clubs if they budget prudently. That is evidently the case: it is getting them to do it that is difficult. There are few sectors of the economy in which progress or otherwise can be so precisely measured (‘the table does not lie’) and in which short-termism is so rampant.
St.Johnstone chairman Steve Brown has called for the familiar remedy of a wage cap. But the example of American sport shows that there can be an incentive for players and club managements to collude to evade such caps.
Meanwhile, Rangers FC supporters have been urged to invest in a Buy Rangers scheme ahead of its AIM listing. According to GrowthBusiness.co.uk:
“Shares will be available at a fixed price of £125, with the maximum amount fans can invest standing at £20,000. Once fans’ investments have been collected, The Rangers Supporters Trust will then buy a block of shares on behalf of all investors when the AIM listing is completed.”