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Articles and reports on financial issues within football – soccer – from The Political Economy of Football.
It is difficult to think of a sector other than football where a business is required to loan out its key assets to someone else who may return them in a damaged condition which mean they can’t be utilised. A classic example is Michael Essien who has not played for Chelsea since being injured in training for the Africa Cup of Nations in January.
It looks as if leisure tycoon Trevor Hemmings is close to securing control of Preston North End. He now has just over 68 per cent of the shares and only needs 7 per cent more to delist the club and take it off the Alternative Investment Market (AIM). London-based shareholder and fan Paul Wilkinson who owns a 12 per cent block of shares has accepted his 5p a share offer.
Manchester United is among a group of taxpayers petitioning the High Court for a VAT refund. The claimants say compound rather than simple interest should be paid on VAT refunds. The club’s claim relates to money the club says it is owed after being charged VAT on its stock market flotation in 1991.
More here: Manchester United VAT case is tip of iceberg – BusinessWings.co.uk
Non-league clubs are complaining that they are being treated more harshly and more inconsistently than league clubs who run into financial trouble. Prominent among the complainants are Northwich Victoria and Salisbury City who consider that they have been unfailrly demoted to Step 3 of the non-league pyramid for failing to comply with financial rules.
On Saturday afternoon I took one of my children and my oldest granddaughter round Harrods. While we looked for a dress for my granddaughter’s upcoming 10th birthday, my son-in-law was preparing a barbecue and party for friends from the village where his family lives in Oxfordshire, a scene that was being repeated all over the country. My daughter and granddaughter stayed on shopping in London while I rushed home to watch the match (quite possibly a mistake for an England supporter).
A recent survey undertaken by The Times found that Liverpool’s board of directors was the second most unpopular in the Premier League. Only Portsmouth’s directors, who brough the club close to extinction, got a lower rating. The directors at Sunderland and Stoke got the highest rating.
Although Radio 5 carried a report earlier this morning that the takeover bid for Rangers by Andrew Ellis might be nearing completion, the view north of the border is that the whole deal could be close to collapse with Ellis unable to come up with the required funds.
Just when it looked as if Portsmouth were all set to emerge from administration through a CVA, new difficulties have emerged. At one time it looked as if Revenue and Customs (HMRC) were prepared to vote in favour of a CVA as part of a package deal, but now they appear to be taking a different view.
Over the next few days, we will be taking at the economic and financial gains (and losses) from the World Cup. Today we look at Fifa. Subsequent posts will look at the impact on the UK domestic economy and on South Africa, although there the issues are as much to do with politics and prestige as with economics.
The Premier League continued to grow last year despite the recession, showing the resilience of its business model. Premier League clubs’ revenue reached a record £1,981m in 2008/09 and will have exceeded £2 billion in the 2009/10 season, according to the latest Annual Review of Football Finance from the Sport Business Group at Deloitte. The new broadcast contracts will drive a further increase in revenues to £2.2 billion in 2010/11. In total, the Top 92 English clubs’ saw revenues increase by £100m to over £2.5 billion.