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Articles and reports on financial issues within football – soccer – from The Political Economy of Football.
Talks with a German consortium for the takeover of Sunderland have ended in failure. The club set a time limit on the talks so that preparations could begin for next season and have now brought in Simon Grayson as manager.
The financial pressures on Championship clubs as they seek promotion to the Premier League are emphasised by the fact that they made an average loss of just under £10m in the 2015-16 season. Only Wolverhampton Wanderers made a profit and that was because of a player sale.
Middlesbrough made the biggest loss at £32m, followed by Brighton and Hove Albion at £25.9m. QPR had the biggest wage bill at £40.8m, almost equivalent to their turnover.
Newcastle United need to wake up to the new financial realities of the Premier League, argues this article. It’s no good hunting around in the bargain basement for players.
Crawley Town FC’s Turkish owner Ziya Eren has pumped £1m into the club in his first four months in charge. This takes the form of investment and interest free loans.
It is estimated that the club lost £270,000 in 2015-16. It faces competition from Premier League clubs Brighton and Hove Albion to the south and Crystal Palace, with a new manager, to the north.
A Chinese firm 5USport has taken a stake in Northampton Town FC. The size of the stake has been revealed as 60 per cent. but the chairman of the Cobblers, Kelvin Thomas, insists that it is a partnership rather than a takeover.
It does show that Chinese firms from a variety of backgrounds are prepared to take an interest in football clubs below the Premier League level.
Burnley manager Sean Dyche has urged Burnley fans to be realistic as the club seeks to establish itself in the Premier League. The Clarets have to operate in accordance with a business model more than most clubs in the Premiership.
Promoted Brighton and Hove Albion and Newcastle United both have big money behind them, although Huddersfield Town are in the unusual position of having more limited resources than Burnley.
The Football Association has pulled out of a sponsorship deal with Ladbrokes Coral worth up to £4m a year, after concern about the gambling industry’s influence over the national game. It is understood that the FA has paid Ladbrokes for the value of one year of the contract and no further penalty for ending it early.
Ladbrokes has similar deals with the Scottish FA and the Football Association of Ireland.
Francesco Becchetti is no longer in charge at Leyton Orient after a controversial period of ownership which saw the club relegated out of the Football League.
An Eagle Investments consortium led by Baskin Robbins and Dunkin’ Donuts chief executive Nigel Travis has taken over. He is a lifelong fan. The price paid has not been disclosed.
China’s Under 20 team is to be invited to compete in one of Germany’s regional leagues. Teams will be paid €15,000 compensation for each of the home games they play against the team.
This would seem to be further evidence of the march of globalisation in football. It also reflects global power politics. President Xi Jinping is to be in Berlin in early July when the scheme is to be presented to him.
A consortium of Sunderland supporters bidding to take over the club has pulled out of the running. Because of film and television commitments they think it isn’t the right time to get involved. It is hoped that new owners will be in place before the end of the month.