The gap between the Championship and League 1 has widened, particularly in terms of television revenues with the second tier becoming more like a de facto Premiership 2. This may lead to clubs spending more than they can afford in the effort to get promoted. Sheffield Wednesday has had to be rescued this season, Plymouth Argyle is in dire straits and Charlton is awaiting the completion of a takeover to save the club from administration.
The gap between the Championship and League 1 has widened, particularly in terms of television revenues with the second tier becoming more like a de facto Premiership 2. This may lead to clubs spending more than they can afford in the effort to get promoted. Sheffield Wednesday has had to be rescued this season, Plymouth Argyle is in dire straits and Charlton is awaiting the completion of a takeover to save the club from administration.
Now Peterborough, who were in the second tier, are facing financial challenges. Earlier this week Posh director of football Barry Fry admitted that he wouldn’t oppose the sale of a star player in January because of the worsening financial situation at London Road. Rumours are now circulating of possible sales to Hull City where the new owners have less cash at their disposal than they originally thought because of the cost of acquiring the club and sorting out its debts.
Posh are struggling because of the highest wage bill in the club’s history, falling attendances and high rent payments on their London Road stadium to Peterborough City Council. Posh chairman Darragh MacAnthony said in a statement to the local paper, The Evening Telegraph, yesterday that the finances are in place to keep the club going for the rest of this season without the need to sell any players. This is not in any way a survival crisis.
However, it does imply financial constraints. MacAnthony left himself a loophole by promising his best players that he wouldn’t stand in their way should they have the opportunity to join bigger clubs.