What happens to Rangers is key to the financial salvation of Scottish football argue insolvency experts Begbies Traynor in their latest report on the state of the game. A five per cent decline in attendances can largely be attributed to the boycott of Rangers.
What happens to Rangers is key to the financial salvation of Scottish football argue insolvency experts Begbies Traynor in their latest report on the state of the game. A five per cent decline in attendances can largely be attributed to the boycott of Rangers.
However, the game as a whole north of the border is in better financial health than it was. Only one club is in serious financial trouble. It isn’t Rangers, but Begbies Traynor are not prepared to name them. They argue that other clubs have learned from the financial implosion of Rangers and are managing their affairs more priudently. Consequently, there has been a sharp decline in clubs in trouble.
Ken Pattullo, a partner in the firm, said: ‘Overall an increased wariness among the other big clubs to spend heavily on transfers for fear of being the next big failure, and general good business planning in the boardrooms, has stabilised what was a really dangerous situation for the sport in Scotland.’
He added: ‘With a lack of money in the Scottish game, due largely to Rangers’ enforced exit from the Scottish Premier League, and the ensuing dearth of TV money, clubs have been wisely cutting their cloth accordingly and have largely avoided splashing out on players in the last two or three transfer windows.’
South of the border, just three clubs in the Football League are in serious financial distress. The report’s authors seem to have more confidence in the impact of financial fair play and a tighter fit and proper persons test than I would have. However, it does seem that owners are more ready to sell up privately when signs of trouble appear. Charlton Athletic would be a case in point where looming administration was avoided by a new owner coming in.