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Articles and reports on financial issues within football – soccer – from The Political Economy of Football.
Lower league clubs in Greater Manchester face some of the biggest challenges of any clubs in securing financial stability. The attractions of City and United are close at hand and these clubs are generally located in not particularly prosperous areas of the conurbation.
FC United of Manchester may have to apply for an overdraft as they are ‘in a worrying financial position’. They are struggling to meet their targets and heading towards a loss this year. That will leave the club unable to meet further obligations for the development of Broadhurst Park which they moved into in 2016.
The Red Rebels had appointed a new board in the summer and hoped their financial situation would improve. However, they now admit that they had a staffing structure that was ‘unfit for purpose’ and an ‘unrealistic’ financial plan for the 2015-16 season.
Bolton Wanderers have denied reports that they are in talks with a Saudi-based group about a takeover. In September chairman Ken Anderson did say that he was looking for more investment from abroad.
Before the takeover deal by a consortium in March the club had accumulated debts of £170m, although these were cleared as part of the settlement. The club are currently under a transfer embargo for failing to comply with Financial Fair Play obligations.
The issue of promotion and relegation (or ‘pro-rel’ as it is called there) from MLS is back on the agenda in the United States, in part driven by activist fans on social media. A poll has shown that 88 per cent of fans favour it, but the owners of the MLS are adamantly opposed.
It is argued that it is not part of American sporting culture in a franchise based system. There is no promotion or relegation in the other major sports.
A report by Ernst & Young suggests that Leicester City’s surprise capture of the Premier League title boosted the Leicestershire economy by more than £140m over the past football season. Of the £140m Gross Value Added. £110m was generated directly by the club, its community activities and match day tourism.
Manchester United’s debt has risen by 18 per cent to £338m, in part because of the Brexit vote and the consequent worsening of the dollar-pound exchange rate.
Results for the three months to 30 September saw revenue drop by 2.8 per cent while operating profits were down by 35 per cent to £6.2m. This was largely because of the club’s absence from the Champions League.
Two-thirds of football ticket prices have fallen or been frozen compared with last season according to a survey conducted by the BBC. Paradoxically, it can now cost more to go to an away game in the Championship because of the £30 price cap agreed by Premier League ckubs.
The average price of an away ticket in the Premier League has fallen sharply from £46.44 to £29,46. The average cost of the cheapest home matchday ticket has fallen by six per cent from £30.75 to £29.05.
The author of the impressive Swiss Ramble blog has turned his attention to the finances of Norwich City and in general gives them a clean bill of health. They have mixed sporting success with financial prudence.
Manchester United are now the best paid football team in the world, having overtaken Barcelona. Average basic first team pay at United is £110,962 a week. This is forty times as much as the club was paying in the first season of Premier League football in 1992-3.
Red Bull are reported to be in the market for an English football club to add to those they own in Germany and Austria. It would be a logical next move for them given the prestige associated with the Premier League.
The director of sports at RB Leipzig recently attended games at Brentford, Charlton and Chelsea. However, none of these clubs is for sale. Charlton have had difficulties with their current Belgian owner, but it seems that the Charlton visit focused on a possible player acquisition.