Article Taxonomy: Football Finance

Articles and reports on financial issues within football – soccer – from The Political Economy of Football.

Newcastle fanzine criticises Ashley record

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Toon fanzine The Mag has compared Spurs in the Daniel Levy era with the St James’ Park club under Mike Ashley. According to Deloittes, in 2005 Newcastle had the 12th biggest turnover in world football with Spurs one place behind them.

In the years that followed (Ashley took over in 2007), the wheels came off. Newcastle’s commercial income fell from £27.9million in 2006 to £13.8m in 2012 and matchday income from £35.3m in 2005 to £23.9m last year. Since 2005, Spurs more than doubled annual earnings to £144m.

Revenue up nearly a third at United

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Manchester United’s financial results for the quarter ended 30 September show that total revenue was up 29.9%, with record first quarter revenue of £98.5m. The club predicts revenues for the whole year of £420m-£430m, bringing it closer to Europe’s wealthiest clubs, Barcelona and Real Madrid.

Hull City lose nearly £28m

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Hull City will this week announce the club made a loss in its promotion year to the Premier League of just under £28m. The figure, £27.8m, principally financed manager Steve Bruce’s signings and an increased wage bill in the 12 months to 31 July this year. The losses came before the summer’s major signing for City, midfielder Tom Huddlestone from Tottenham Hotspur for £5m.

Doncaster ready to accept bid

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Doncaster Rovers director Terry Bramall claims he is ready to accept Sequentia Capital’s bid to buy Rovers. Months of disagreement between the club’s major shareholders over the potential takeover played a major factor in John Ryan’s decision to resign as Rovers chairman on Saturday. He has said he won’t come back.

Doncaster chairman resigns in takeover row

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Doncaster Rovers chairman John Ryan has resigned and sat with the fans at Saturday’s game against Barnsley. Ryan took over the club in 1998 when they were a Conference side.

In June it was reported that Irish-led consortium Sequentia Capital, who are backed by a wealthy Belize-based tycoon, was interested in taking over the club. A heads of terms agreement was signed by both parties. However, in September the club issued a statement saying that Doncaster would remain in their current investors’ hands.

Big liabilities at Sky Blues

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Coventry City’s affairs are complicated with three companies involved. It now appears that accounts for Coventry City Football (Holdings) Limited for 2011/12 will never be produced as the company is to be struck off the Companies House register.

Accounts have appeared for Sky Blue Sports & Leisure Limited for the year up to May 2012 when the club was relegated to League One. These show net liabilities of £37.7m. with in year losses of £4m, compared with £16m the previous year. The losses were offset by £2.8m profit from player transfers.

Blackburn post big loss

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Blackburn Rovers have posted an annual pre-tax loss of £36.5m after relegation from the Premier League in 2012. This compares with a £4.3m profit a year earlier.

Their accounts reveal a £27.3m drop in turnover and a worrying 136.1 per cent wages-to-turnover ratio for the year ending 2013, with wages totalling £36.6m. There was an operating loss of £24.3m before player trading.

Hollande stands firm on tax

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French president Francoise Hollande has refused to back down after football clubs asked that they should be let off paying his 75 per cent income tax on salaries above €1m.

After a special meeting with football administrators the president said that the tax would apply for two years to all companies concerned. Opinion polls showed overwhelming opposition to the football clubs’ strike call and backing for the tax on millionaire footballers.

Good profit at Swansea

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Swansea City FC have announced details of its latest accounts which show a healthy profit of £15.3m for the year ending May 31, 2013. The club saw its turnover, excluding player dealings, increase by £1.9m to £67.1m, up from £65.2m the previous year.

Profit before interest charges and taxation amounted to £20.6m which was made up of £8.4m from normal operations and £12.2m from player dealings which arose in the main from the sale of players Joe Allen and Scott Sinclair.