WG

Non-League Football Clubs Go Bust

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As we have argued for some time non-league clubs are most likely to go bust in the recession. They are often dependent on smaller scale businesses as benefactors which are most likely to be hit by the credit crunch. Also many clubs have over spent in an attempt to compete. With the end of the season we are now seeing a flurry of clubs going into administration. Chester City went into administration after being relegated from the Football League. Northwich Victoria have entered administration for the second time in five years.

Football League Wants A Bigger Share Of The Pot

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The Football League wants the Premiership to increase its handouts to lower division clubs in proportion to wage rises at the top level. The League would like to receive a yearly income based on a percentage of Premiership clubs’ total wages bill as part of the ‘solidarity’ payment that the top tier already contributes for youth and community development and as parachute payments to relegated clubs. Last season those were worth £31.8m.

Footballers To Strike Back Against 50p Tax Rate

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Premiership clubs are braced for a wave of pay demands from star players in anticipation of the new 50p tax rate on higher earners. Figures from HSBC Private Bank and tax experts Saffery Champness suggest that, if most Premiership players are in the £50,000-£70,000 a week bracket, players at the top end of the range face a £330,000 increase in their tax bills to £1.7m from next year. Manchester United’s Christiano Ronaldo is reputedly paid £125,000 a week.

Wigan Athletic Top Premiership Value League

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It’s an unlikely honour, but Wigan are champions of the Premiership in a ‘points for pounds’ league that measures the extent to which season ticket holders are given value for money. ING Direct compares season ticket costs with the team’s performance in the top flight. In the rankings, the Lactics are followed by Blackburn, Aston Villa, Manchester United and Liverpool. Newcastle finish last with Spurs and Portsmouth also in the bottom three. 17 out of 20 Premiership clubs have already announced a prize freeze or a reduction for next year.

Former Owner Rescues Darlington Football Club

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Not so long ago it looked as if Darlington Football Club might fold. But now the club has taken the first steps to survival when the businessman who put the club into administration announced he had secured a funding lifeline. George Houghton said he planned to remain at the club for the forseeable future until ‘a person can offer the club more than I’. The announcement still leaves a number of key questions unanswered. The club will remain in administration for the next couple of months.

Buyer’s Market For Football Club Shirt Sponsorship

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Premiership clubs are facing a buyer’s market for shirt sponsorships. 188Bet, an Asia-focused online gambling company unknown in the UK has pulled off a double sponsorship deal. It will be the shirt sponsor for Bolton Wanderers and Wigan Athletic for the next two seasons. It is believed that 188Bet is paying Bolton about £70,000 a year, while Wigan is getting about £60,000. Both clubs may get bonuses based on team performance. A year ago both clubs could have expected deals in the region of £1m a year.

Premiership Response To Government Criticisms

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The Premier League has made a number of responses to government criticisms of the way it runs its affairs. The proposed changes do not address the competitive balance or debt burden issues raised by culture secretary Andy Burnham, but he has welcomed the Premiership’s response. It may be that he has other matters to concentrate on at the moment and cannot afford a confrontation with the Premier League.

Money Still Available To Buy Football Clubs

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The money is there to buy football clubs, but valuations will have to be more realistic. That is the view of Keith Harris, the executive chairman of investment bank Seymour Pierce. In the case of Liverpool, this means that the owners will have to slash 20 per cent from the asking price if they want to sell the club. Last year they failed to achieve a sale with an asking price of £500m.

Merthyr Tydfil FC on the Brink

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Merthyr Tydfil chairman Wyn Holloway says there is ‘next to no chance’ of the Welsh club surviving the summer. The BGB Premier club survived a winding up order after fans pledged to pay £7,000 owed to HM Revenue and Customs. However, the Martyrs have other debts totalling more than £315,000, including around £25,000 to league sponsors British Gas. The Martyrs ToThe Cause fans’ group say they will only take over the club if Holloway keeps the six-figure debt in his name. But the Oxfordshire-based businessmen refused and admits Merthyr face a bleak future.

Phoenix Club Plan in Place for Darlington FC

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Darlington fans are putting in place contingency plans to create a Phoenix club in the non-league pyramid should the League 2 club fold in the next few weeks as looks increasingly likely. The Quakers’ future has been described as ‘dire’ by the administrators who have been searching for a buyer. Former vice-chairman Raj Singh made a last rescue bid, but it was rejected by the administrators as unworkable. The club will be liquidated if a credible buyer does not come forward and the club’s insolvency specialists have admitted they have no plans to secure a League place for next season.