The Political Economy of Football V2

This evening two of the north’s greatest football clubs meet when Leeds play Newcastle United.  Both represent regional capitals (Manchester is not capital of the whole north).   Even the Everton supporting prime minister had to come to the north-east for the Great North Run. It will be a curious walk to Elland Road for Newcastle United fans on Monday evening. The caged tunnel down which away supporters were funnelled has gone. The Norman Hunter Suite that sat next to the entrance to the visiting section has been demolished. Instead, amid what will probably feel more claustrophobic for the 2,960 supporters from Tyneside, will be the white walls of a building site, housing the cranes, diggers and machinery that have already started the transformation of one of English football’s most atmospheric grounds. That main stand development, which could be finished by 2028 and will increase the capacity of Elland Road to 48,000, is the most visual display of ambitio...

From his Zurich fastness, the Swiss Ramble considers whether Arsenal’s transfer spending has been constrained by financial regulations.   His workings out and much more interesting detail can be found on his Substack page. By most standards Arsenal had a decent transfer window, as they managed to strengthen their midfield and defence, but many of their fans were still left disappointed by the absence of a marquee signing in attack. Excluding the various add-ons, Arsenal’s £196m gross spend was a lot lower than many of their rivals, so it was less than half of Manchester City’s £458m, while four other clubs splashed out more than a quarter of a billion, namely Chelsea £362m, Tottenham £319m, Newcastle United £274m and Aston Villa £261m.   Of course, many of these clubs also sold well, especially Chelsea £419m, Aston Villa £318m, Manchester City £301m and Newcastle United £243m, all of whom generated significantly more than Arsenal’s £103m. Is the club sailing close t...

In the unlikely event of an American consortium asking my advice on buying an EFL club, I would say go for a ‘stand alone’ club, on that has no rivals in its vicinity.  Shrewsbury Town meets that criterion, being the only EFL club in Shropshire or Salop. Salop is a very rural county by English standards.    The county town is Shrewsbury.   To its east is the ‘new town’ of Telford which has its own non-league club and also quite a big Wolves following.   Salop has quite a high retired population who may have historic allegiances elsewhere. So it’s a challenge.   It reminds me in many ways of Shropshire pop group T’ Pau of ‘China in my Hands’ fame.   I still have their vinyls, but friends dismiss them as one hit wonders. T’ Pau may just have a nostalgic following, but the Shrews can be revived. Former U.S. and Premier League goalkeeper Brad Friedel is part of an American group that is trying to buy English Football League strugglers Shrewsbury Town...

The finances of Barcelona are very complex, but in some ways quite alarming.   Continued success requires spending on players, the stadium and many other things besides (never forget utilities costs).   Yet one cannot run a world class football club and a global brand without taking big risks, even if it inevitably draws you into an international financial world that looks increasingly unstable and under pressure to many analysts. Barca tottered past €1billion (£859m; $1.1bn) in revenues last season, only the second football club ever to do so, behind rivals Real Madrid. Yet they still failed to turn a profit, losing €17.8m post-tax, while a costly remodelling of their Camp Nou home remains unfinished and debts continue to pile high. On the pitch, they wrapped up a second consecutive La Liga title in May in the best way possible, beating Madrid 2-0 at home to ensure their El Clasico rivals couldn’t catch them. Hansi Flick’s side fell at the quarter-fina...

Liver;pool have signed a shirt deal with Turkish Airlines, the fourth largest in the world, that is worth in excess of £300m over five years. The club believe that the deal is the most valuable in Premier League history, although Manchester United have made similar claims. The new deal will take over from that with Standard Chartered in June 2027 which was estimated to be worth £50m a season compared with £60m for the new deal.  Standard Chartered will remain as a global partner. They have been Liverpool's front of shirt sponsor since 2010.   The club have had only three such partners in the last 35 years, Carlsberg preceding Standard Chaetered. A deal for sleeve sponsorship is also up for renewal.   Expedia's branding has been worth between £9m and £12m a year.  The kit deal with Adifdas is worth £90m a year.

Barcelona has topped revenues of €1 billion, but remains one of the most indebted clubs in world soccer:  https://forzafootball.com/news/barcelona-announce-record-breaking-finances-but-still-trail-real-madrid-159443561 The club has boosted its finances with a new commercial deal:  ysscores.com/en/news/14037095/fc-barcelona-boosts-its-finances-with-a-new-commercial-deal