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Articles and reports on financial issues within football – soccer – from The Political Economy of Football.
The 118-year old Goodison Park stadium is not the easiest place to play at as Chelsea found last night. With their plans to move to a new 50,000-capacity stadium at Kirkby effectively vetoed by the government, Everton are taking a fresh look at rehabilitating their traditional home. They have talked to developers and landowners and brought in an architect who has not been involved with the club before to come up with some ideas.
Three clubs got temporary reprieves from winding up orders today – Portsmouth in the Premiership, Cardiff City in the Championship and Southend United in League 1. Of the three the club in greatest peril remains Portsmouth who are on their fourth owner this season.
A Liverpool fan came to see me the other day and reasonably asked why Hicks and Gillett had sold their stakes in North American sports businesses ahead of selling Liverpool. It seems that the American duo are determined to get the best possible price for Liverpool, although they are under some pressure from the Royal Bank of Scotland to sell up. There are a number of potenial buyers in the offing, but one could person who could certainly afford to conclude a deal is the richest man in India and the seventh richest person in the world: http://www.timesonline.co.uk/tol/sport
Both of England’s two leading university towns, Oxford and Cambridge, each have two non-league clubs. In the case of Oxford, Oxford United (formerly Headington United reflecting the location of their old ground) were at one time in the top flight of English football. They are now playing in the Conference and are top on goal difference with hopes of returning to the Football League next season.
Things may be looking up on the pitch for Manchester United, but the market doesn’t like their bonds very much. Of course, the club has already trousered the money, but they may find it more challenging if they come back to the market in the future. The bonds have become one of the worst performers this year. Of course, they were mainly bought for the interest ‘coupon’ rather than capital gain. However, the sterling bonds have fallen to just 93 per cent of the value. If the investor had splashed out around £100,000, they would have already made a paper loss of £5,000.
The EDP has reported on the delayed AGM at Norwich City Football Club. In what appeared to be very frank and open meeting with the club’s shareholders, the NCFC hierarchy outlined “the financial fall from grace which has run parallel with the rise and fall of the club’s fortunes on the football field.”
Manchester United chief executive David Gill has criticised fans planning a protest at the Champions League match against AC Milan on 10 March. Concerned by the debt the club has built up under the Glazers, a number of fans plan to enter the ground 10 minutes after kick off to expose empty seats at the ground with millions of people watching around the world. Gill told Radio 5, ‘[The protest] serves no purpose and it won’t change a thing.
We have been talking for a few weeks on this page about a tougher stance by Revenue and Customs towards football clubs who do not pay their tax debts (which is at the expense of taxpayers in general). It’s pleasing to see that the Financial Times has now picked up on the story and has produced a report that exhibits the thoroughness and balance that is characteristic of the Pink ‘Un.
The imminent sale of the Texas Rangers baseball team by Tom Hicks Jr, the Liverpool co-owner, may boost his bank balance, but will do little to help Liverpool Football Club. Hicks is expected to raise over $500m (around £310m) from the sale, but none of the money will be plouged back into the club. Liverpool continues its quest for investment in an effort to reduce the £237m of debt built up by Hicks and co-owner George Gillett since their 2007 takeover.
