Article Taxonomy: Football Finance

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

Aston Villa deal imminent

by

A deal to sell Aston Villa to a consortium for around £150m is thought to be imminent.  Due diligence has been in progress and the purchasers are just waiting to ensure that the club’s Premiership place is secure.

Because of the impending deal Villa have not made any arrangements for a pre-season tour.   Randy Lerner will make a rare visit to a Villa match when he attends the FA Cup semi-final on Sunday.

It remains to be seen whether new owners can realise the potential of this sleeping giant.

Big losses at Shrewsbury Town

by

The cost of relegation to League 2 is reflected in losses of £285,000 at Shrewsbury Town.   Substantial losses are also anticipated this year as the club has spent to secure promotion.

Attendances did fall in League 2, but at an average attendance of 5,104 the club is ranked sixth in League Two.  As the only senior club in Shropshire, it has a good catchment area to draw on.

Lot of interest in buying Baggies

by

At least five groups have now expressed an interest in taking over West Bromwich Albion.  An Australian consortium, two groups from the Far East and a potential buyer from the United States are known to have expressed an interest.   At least one other group of possible buyers has already been shown round The Hawthorns and the training ground.

An effective foreign owner

by

There are good foreign owners of football clubs and others who seem to be on an ego trip or unwilling to take advice.   The same could be said of domestic owners.   Milan Mandaric has owned three clubs and has done an effective job.   He says that the secret is to respect England’s football heritage and be prepared to make tough decisions.

More turmoil at Leeds

by

Neil Redfearn is considering his position at Leeds United after assistant coach Steve Thompson was suspended, apparently without his knowledge.   Thompson was suspended by director of football, Nicola Salerno.

It’s long been our view that the importance of Leeds as a regional capital and its footballing history means that the club merits a Premiership place.    However, a history of mismanagement and baffling decisions has undermined the club to an extent that has not happened anywhere else.

Crystal Palace make good profit

by

As the Premier League returns to the black, Crystal Palace are the latest club to report a profit.    They have managed to achieve 25 per cent pre-tax profits, £23m on turnover of £93.4m.   They achieved a good profit in percentage terms in their last year in the Championship, £3.5m on a much smaller turnover of £14.5m or 24 per cent.

Their case illustrates how much the smaller clubs in the Premier League rely on broadcasting revenue which accounts for 81 per cent of their turnover.

Good and bad news in Rangers accounts

by

The latest accounts from Rangers for the six months to December 31st contain both good and bad news. On the postive side, the operating loss was down by £800,000, largely reflecting the fact that costs were down £1 million.  Revenue was stable at £13m, reflecting the fact that the alienated fans who had decided to stay away had already gone.

Champions league money boost

by

Premier League clubs are already desperate to secure one of the Champions League places, for the prestige as much as for the additional income.  For Liverpool it could make the difference between a season that is viewed as successful and one that is not.

The financial rewards are going to increase considerably next season.  Appearance money from the group stage is going to increase by 50 per cent.

Doubts about Premier League assistance

by

The £1 billion provided by the Premier League out of the new £5.14bn television deal for grassroots football, solidarity payments to lower leagues, help for the disadvantaged and other purposes has been generally welcomed by fan organisations.   

They have also welcomed the intention to make the Premier League a living wage organisation, although some doubts have been expressed about how this will apply to sub-contractors such as match day stewards.