David Conn at The Guardian has produced an interesting review of Championship club finances based on accounts for the 2012-13 season. Of course, it does include clubs such as Bristol City who have now been out of the Championship for over a year.
David Conn at The Guardian has produced an interesting review of Championship club finances based on accounts for the 2012-13 season. Of course, it does include clubs such as Bristol City who have now been out of the Championship for over a year.
What is interesting but not surprising is the number of clubs that have wages to turnover ratios of over 100 per cent, even as high as 190 per cent. The only club that gets anywhere near the 50 per cent ratio recommended by Deloitte are Peterborough United and they got relegated.
The lure of the Premier League does, of course, encourage clubs to overspend. This is not so surprising when one considers that one year in the Premier League is worth thirty years playing in the Championship.
The combined debt of clubs is now £1 billion, often in the form of interest bearing loans from owners. Owners are now having to invest to avoid relegation.
Financial fair play rules start to apply this summer and if Queens Park Rangers fail to win the play off final, they face a big fine. However, in that event, they and other clubs are likely to take legal action to challenge the rules.