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WG This is one of the classic ‘Colemanballs’ commentary statements, but probably it was never made. The names of many Scottish clubs do cause geographical confusion: Queen of the South sounds a lot more impressive than Dumfries and Clyde now play in Cumbernauld. Kirkcaldy’s Raith Rovers are supported by prime minister Gordon Brown. Like the prime minister, they face a struggle with unpleasant financial realities.
Since Barry Hearn took over at Leyton Orient in 1995, Brisbane Road has been transformed beyond recognition. It is now one of the best grounds outside the top two divisions. However, attendances have not really responded. Only 3,705 were there for a crucial relegation match. This is not so surprising when one considers the Premiership alternatives available nearby: Arsenal, Spurs, West Ham. In fact the club’s database shows that the majority of fans no longer live nearby which would be typical for most London clubs.
Going into administration is a very common reorganisation device for football clubs. Research by John Beech at Coventry University says that since 1986 there have been 68 cases of clubs in English leagues becoming insolvent, some of them more than once, although liquidation remains rare. This is because administration is a tactical move by a financially challenged club. You put yourself in administration, proceed to a company voluntary arrangement and re-emerge with new directors and a refreshed balance sheet.
HM Revenue and Customs are launching a clampdown on the way top footballers are paid. They have begun a fresh wave of investigations into so-called ‘image rights’ payments by Premiership clubs to their players. Wigan Athletic has already confirmed that it has been examined by the authorities. In its most recent accounts the club states that it has ‘undergone an investigation by HMRC into the correct operation of PAYE/NI on certain payments and expenses made to/on behalf of employees.’ Club chairman David Whelan confirmed that the probe concerned image rights payments.
Real fears are being expressed that Southampton Football Club may not exist by the end of the season. This is despite the fact that it has a new stadium and plays in a large and relatively prosperous city. The club’s mountain of debt incurred as the result of building St.Mary’s, which required continuing Premiership status to service it, makes the club unattractive to a potential buyer, even if there were any around. This is not a situation where a consortium of fans can easily bail out the club, although that may be what eventually happens.
Spurs have released images of their planned new stadium to be built next to White Hart Lane. It looks a bit like a grounded flying saucer and there is a resemblance to Arsenal’s Emirates Stadium, although it is somewhat squatter to judge from the images. The capacity has been trimmed back from 60,000 to 58,000 in order to keep the fans closer to the pitch and maximise the atmosphere. The stadium area would also include a 150-room hotel (not that large by London standards) and a public square with space for street markets and performers as well as an ice rink.
The battle for control of Arsenal has taken a potentially decisive turn after leading shareholder Danny Fiszman sold a third of his stake to American sports franchise owner Stan Kroenke for £42.5m. Fiszman sold 5,000 shares at a price of £8,500 each, taking Mr Kroenke’s stake from 12.4 per cent to 20.5 per cent, overtaking Mr Fiszman whose stake is now 16.1 per cent. The biggest shareholdr is still Alisher Usmanov, the Uzbek-born billionaire steel magnate, whose share is less than 25 per cent.
It looked like a dream come true for Conference side Ebbsfleet United (formerly Gravesend and Northfleet) when the MyFootballClub scheme was set up. For a £35 fee, fans got a real fantasy football game with the opportunity to influence the selection of the team. But Ebbsfleet is now threatened with relegation from the Conference and only 9,169 of the online owners’ club, almost 20,000 down on last year, paid their renewal fee, leading to a £300,000 revenue shortfall.
Darlington came close to being the first Football League club to cease playing during the recession this weekend. The future of the club is still far from secure and it has been handed what has been described as ‘one last roll of the dice’. Former chairman George Houghton, a controversial figure with fans, has given the club an extra £150,000 which will see it through until the end of the season. However, Mr Houghton has warned that this is the last time he will help the club out and a new buyer or consortium needs to be found if the Quakers are to survive beyond May.
Lower league clubs are increasingly talking of big cuts in the size of their squads in the summer. The problems they face are exemplified by Swindon Town FC, lower mid-table in League 1. The Wiltshire club had one season in the Premiership, but has recently been in administration twice. A consortium bought it in January last year and paid off its £5m debts. The club was just beginning to get back on a sound financial footing when the recession struck. It is now difficult to find match sponsors at £1,250 a game or sponsors of individual players.