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Football clubs large and small often believe that a new stadium is the answer to all their problems. A properly thought through project like the Emirates can contribute to a club’s standing and revenue stream. But all too often stadium projects are driven by considerations of prestige with the financial calculations based on hope rather than reality.
A big story in the financial pages in the past week has been the state of the Irish economy and whether it can continue to fund its debts given the state of some of the country’s banks in the aftermath of the collapse of the ‘Celtic Tiger’ boom. These concerns extend to the Football Association of Ireland (FAI) which has debts of €50m, although it made a profit of €5m last year and insists it is on track to pay them all off by 2020.
The Scottish League Cup will need a new sponsor after Cooperative Insurance announced that they would not renew their contract when it expires at the end of the season. Originally as CIS, they have been sponsors since 1999.
Wycombe Wanderers have decided that their preferred site for a new stadium to be shared with London Wasps is Wycombe Air Park at Booker. The plan is to have a stadium that would accommodate at least 17,500 spectators.
The proposed stadium would also include facilities for cricket, a racquet centre and an athletics facility. There are also plans for a hotel, residential development and centres for education and training. It is hoped that the stadium would reduce the reliance of the Chairboy on funds provided by owner Steve Hayes.
West Ham players are angered by the non-payment of so-called ‘image rights fees’ by the club’s owners. However, the issues are broader than West Ham and relate to the legitimacy of such payments at a time when football is facing a clampdown by the tax authorities who are eager to put an end to what they see as loopholes.
Scottish first division club Dundee face financial problems and a possible points deduction through administration. The club was last in administration in 2004 and some fans think that the situation was more serious then. However, there are uncertainties about the future involvement of the club’s benefactor, Calum Melville, while Revenue and Customs are pressing for settlement of a £250,000 tax bill and have apparently rejected a suggestion of payment by instalments.
The financial crisis at Mansfield Town is over with the Stags finding a wealthy benefactor. Multi-millionaire and local businessman John Radford has bought the Conference club for £1 from previous owners Andy Saunders, Steve Hymas and Steve Middleton. They stay on at the club as non-executive directors.
Derby County have emphatically denied that the club is facing financial problems. One of the American consiortium that owns the club, Jeff Martinovich, was reported to be having financial problems back in the States. However, it has been pointed out that he is one of the smaller investors in the club and any difficulties he may face are unrelated to the situation of the club.
Arsenal has announced record profits of £56m before tax. Turnover is up to £379.9m. This record of financial success contrasts with the situation at Liverpool and Manchester United, but it is largely due to the club’s property business. The football business just covers its costs.
An organisation of Liverpool FC fans is planning a campaign of direct action as concerns about the future of the club grow. They are calling for a peaceful sit-in after tomorrow’s game against Sunderland and further action at next week’s game against Blackpool.