Article Taxonomy: Football Finance

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

Bolton try to hold on to assets

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Bolton Wanderers have resisted overtures from Preston North End to buy their training ground.   The financially troubled club is trying to hold on to all its assets while it secures an investor.  

Manager Neil Lennon is confident that the club can avoid administration.   New prospective purchasers keep appearing all the time, although it is difficult to tell how serious they are.   With the help of the Professional Footballers’ Association, players’ wages should be paid at the end of December.

Financial implications of change at Chelsea

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This news report looks at the financial implications of Jose Mourinho’s departure at Chelsea (and quotes me).

That there are financial implications is self-evident, but the net effect may be positive.   Learning from past experience, Chelsea have cut back on the severance payments to departing managers.   Mourinho will get one year’s pay, unless he takes another job, although admittedly that is a tidy sum.  The club is also unlikely to qualify for the Champions League.

Palace deal completed

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The deal for a consortium of American sports investors to take a stake in Crystal Palace has finally been completed – and it’s bigger than expected.

70 per cent of Palace shares have changed hands in a deal which will give the investors a controlling stake.   The cost was £100m and they will put in £50m to upgrade Selhurst Park and invest in the playing squad.

Steve Parish will, however, continue to be involved in all major decisions.

Corporate sales hit at Chelsea

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The poor start to Chelsea’s season has hit corporate hospitality sales.   There has been spare capacity in many of the corporate areas in the past couple of months.    Individual corporate tickets start at £195 plus VAT, including food and drink, rising to £495 plus VAT.

Chelsea claim that a slump in demand is not unusual during the festive period because of the competitive nature of the corporate market at this time of year.

Boosting corporate hospitality income is a key part of the club’s plans for the redevelopment of Stamford Bridge.

Barca want to be first €1bn club

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Barcelona have a six year plan to become the first club with €1bn in revenues.  Current revenues are €600m and it is felt necessary to lift them to counter the growing financial clout of the Premier League.

How long would you have to work to afford a footballer’s car?

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This site enables you to calculate how long you would have to work to afford a footballer’s car.   For example, Cristiano Ronaldo would only have to work for one hour to afford my ageing hatchback.  

His special edition Ferrari is worth £847,000 and he could pay for it with three weeks’ wages (presumably gross rather than after deduction of tax which would be complicated).   It would take me eleven years to afford the same car (assuming I spent nothing on anything else).

Financial hit from United exit significant

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The financial effects of Manchester United’s exit from the Champions League at the hands of Wolfsburg are significant, but far from devastating.   The blow to their prestige is probably greater.

Revenues for 2014-15 fell by £37.8m largely because of United’s failure to qualify for the Champions League.   However, United only budget to reach the quarter finals of the Champions League each year so the cost will be only around £5m on that basis.   It will be more than offeset by the new Premier League broadcasting deal.

Politics and economics are drivers in Chinese football

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A combination of politics and economics are driving increased interest in football in China and the involvement of Chinese investors in European football.   Underlying both drivers are an increasingly prosperous and urbanised population seeking leisure and entertainment  and new sources of identity.   It’s a classic case of political economy, the interaction of states and markets.

Port Vale up for sale

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Port Vale have been put up for sale following their defeat in the FA Cup at Exeter on Saturday.  Chairman Norman Smurthwaite has pumped in 800k since he took over, initially with a business partner in 2012 and then as sole owner from 2013.

He clearly thinks he has not got value for money with Burton Albion topping the table on a 30 per cent smaller budget.