Article Taxonomy: Football Finance

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

Blue skies over Cardiff

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Cardiff City fans have won their battle to revert to their traditional blue colours, owner Vincent Tan having finally seen sense.   He re-branded the club in red kit because he thought that it would increase the club’s appeal in global markets.

Making Cardiff City a global brand was always going to be a big ask.  Playing them in a red kit was never going to make that much difference.   It was a bad marketing ploy which damaged the relationship with fans.  The Bluebirds were rewarded for the change with their second highest attendance of the season yesterday.

Debt up at Blackburn Rovers

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Net debt at Blackburn Rovers is up to £79.8m from £54.5m as the club struggles to comply with financial fair play rules.   £56.8m of the debt takes the form of an interest free loan from owners Venky’s.

The club lost £42.1m, although all sorts of adjustments appear to have been made to the accounts. Turnover was up from £26.9m to £30.4m with media income up by £4.2m.

Rangers reject takeover offer

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The Rangers board has rejected a takeover offer from American Robert Sarver who has an interest in the NBA side Phoenix Suns.   The Suns have not done outstandingly well, but Mr Sarver is also a banker.  He is chairman and chief executive of Western Alliance Bancorp.   It is a small bank based in Arizona despite the rather grandiose title, but the shares have gone up 600 per cent in five years.

Dundee United in profit – again

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It is not that often that a football club records a profit, and even remarkable when they achieve in four of the last five years.   But that is what Dundee United have done with a profit of £1.218m in the year to June 2014.  These figures do not take into account millions made in the transfer market over the summer.

Three Bears take Rangers stake

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The so-called Three Bears consortium has acquired a 16 per cent stake in Rangers, making them the largest shareholders in the club,   The consortium is made up of Scottish businessmen George Letham, Douglas Park and George Turner.   Its involvement offers the club a new way forward without the complications associated with Mike Ashley’s attempts to take control.

20 per cent of West Ham for sale

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20 per cent of West Ham has been put up for sale in an effort to reduce the club’s debts.   These stand at £110m, although half of that amount is owed to the owners.

West Ham was valued at £110m in 2010, but with the impending move to the Olympic Stadium, its value is now estimated at £400m, although that figure may be on the high side.

Warnock is first managerial casualty

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Neil Warnock has been sacked by Crystal Palace, making him the first Premiership managerial casualty of the season.  By this time last year five managers had left.

One has to go back to 1995-6 to find a season when a top flight manager had not left by the festive season.   However, this does not mean that clubs are becoming more cautious about sackings.  With a N of just twenty, there is a strong element of randomness in the pattern of outcomes.   Moreover, there have been plenty of departures in the Football League.

Shareholders turn down Rangers rights issue

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The Rangers board failed to persuade fans to back a rights issue at the annual general meeting, leaving the club face a funding gap in the new year.    The board needed 75 per cent of the votes, but did not even manage a straight majority.  The resolution was rejected by 55.2 per cent.

Chairman David Somers and other board members were heckled and booed by shareholders and fans. Almost 39 per cent of shareholders voted against the reappointment of the chairman.

Indian game offers opportunities for Premier League

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India remains football’s greatest untapped market.  The just-completed first competition of the Indian Super League IISL) could offer a growth market for clubs such as Chelsea and Manchester City.

The Premier League has been advising the ISL.  Premier League chief executive Richard Scudamore forecasts, ‘If the Indian League keeps doing well, then a number of top English clubs are going to strike strategic partnerships with teams here, and perhaps even take ownership stakes.’