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Football Finance


Where does Bournemouth's money come from?

Bournemouth are a welcome addition to the Premiership and most pundits think they have a good chance of staying up.  But where does their money come from?

Russian owner Maxim Demim has loaned at least £25m to the club, plus injecting another £14m in preference shares by the end of 2014.   Most of this came from a Demim company in the Britsh Virgin Islands which also owns the club.   Further millions are expected to be injected in 2015.

The club lost £10m in 2014, taking accumulated losses to £30m.   That figure is expected to have increased for 2015.

Scottish football getting its finances in order

Scottish football is starting to get its finances in order according to the latest survey by a firm of accountants.   However, despite greater prudence, only one Premier League club expects to make a profit after player trading and depreciation.

Financial position at Kidderminster improving

The dire financial position at Kidderminster Harriers is improving, but the club is far from being out of the woods.   The playing budget has been slashed by 50 per cent.

The difficulty for a club in this sort of situation is that it can get into a spiral of decline from which it is difficult to recover.   Results suffer, the club gets relegated and attendances fall, making recovery difficult. Cup runs, which can provide valuable revenue and publicity, become less likely.

Transfer spending goes through £500m barrier

Transfer spending by Premier League clubs this summer has now broken through the £500m barrier. With four weeks to go in the transfer window, analysts think that the remaining £335.4m needed to break last year's record will be spent.

However, net spend could well be down as clubs seek to stay within financial fair play rules.   There could be quite a lot of churn in the composition of squads.

Interest in buying top clubs fades

Premier League clubs are starting to return profits.   These are likely to increase when the effects of the lucrative new television deal kicks in.   Yet in at least five cases sales of Premier League clubs have failed to be brought to a conclusion over the summer, despite often intensive bargaining.

West Bromwich Albion, which at one time entered exclusive talks with a buyer, saw the deal collapse when the Chinese stock market plummeted.   The banks stopped lending and the buyer couldn't complete.

European leagues hit by Premiership wealth

The wealth of the Premier League is having an increasing effect on other European leagues.  Often highly priced transfers bring a welcome stream of income, but the standard is getting worse.   Even in top leagues such as that of Spain it is becoming more and more difficult in terms of salaries to compete with almost all the Premier League clubs and even some in the Championship.

Arsenal ready for transfer splurge

Arsenal have £200m in a bank and are prepared to authorise big spending on transfers this summer, according to Arsenal director Lord Harris.   The club would be prepared to break its £42m transfer record.

The actual transfer budget for the summer is £50m.   There is no doubt that the club's financial transfer position has improved since the greater part of the costs of the move to the Emirates was met.

Bristol City fans complain about Owls ticket prices

It looks as if most Bristol City fans will stay away from their first game back in the Championship after it was revealed that getting into Hillsborough would cost them £39.   The cost of travel from Bristol will not be small and when you add in food the total cost could start to approach £100.

Wenger: United have abandoned youth policy

Arsene Wenger has accused Manchester United of abandoning their traditional youth development policy in favour of using their financial firepower.  He contrasted their approach to that of Arsenal, which he claims remains geared to producing players, albeit many of them recruited as teenagers from all over the world.

Wenger admits that United do not have the calibre of players like Ryan Giggs and David Beckham inside the club because youth talent is spread more through 20 clubs than it was a couple of decades ago.

Bournemouth's potential

Looking at Bournemouth's prospects in the Premiership, this article argues that the club is situated in a 'football wilderness'.   I'm not sure that Southampton being 35 miles away makes it quite like that.