The Political Economy of Football V2

I take no pleasure in the rapid decline of Leicester City.  Many moons ago I went to university in Leicester and my personal tutor and many other staff were keen supporters.   I was delighted when they won the Premier League. What follows is a summary of points made by the authoritative Swiss Ramble.    Much more analysis and charts are available on his Substack page, there is often a free trial. Going down last season represented a significant under-performance, as they enjoyed one of the highest budgets in the Championship, boosted by a hefty parachute payment, and a squad that contained internationals and numerous players with Premier League experience. Points deduction Leicester weren’t helped by being hit with a six-point deduction for breaching the EFL’s Profitability and Sustainability Rules (PSR) by £20.8m for the 3-year monitoring period up to 2023/24. The club appealed, but every one of its arguments was dismissed. They had managed to avoid a...

David Sullivan’s resignation as the co-chairman in June, following a Times and BBC Panorama   investigation into sexual misconduct allegations, which he emphatically denies, has left a power vacuum at the top. Daniel Kretinsky, the Royal Mail owner dubbed the “Czech Sphinx” who has owned a minority stake since 2021, was in pole position to seize control.  That was until Amanda Staveley entered the fray. The former Newcastle United investor agreed last weekend to buy a 25.1 per cent stake from the late David Gold’s family for £150million — which values the club at about £600million — and she could potentially gazump Kretinsky. It will be fascinating to see which of the leading characters in West Ham’s  Game of Thrones  are at the London Stadium on Saturday for the Carabao Cup first-round tie against Portsmouth. There is certainly optimism among supporters that West Ham can bounce back quickly from relegation. They have sold more than 50,000 tickets for the ...

The West Ham United co-owner David Sullivan has been advised not to attend the club’s home matches after a Times and BBC Panorama investigation into sexual misconduct allegations which he emphatically denies. The operator of London Stadium, where West Ham play their home games, has recommended to the club that Sullivan, 77, does not go to games, due to potential for fan unrest.    Additionally, the stadium operator has asked for advance notice of any planned visits by Sullivan in order to implement extra safety and operational measures. West Ham, however, have told London Stadium that they expect the businessman to still attend their games at the ground, before the club’s Carabao Cup tie against Portsmouth on Saturday, their first home match of the season. The Times and BBC Panorama investigation also revealed that Sullivan has had safeguarding restrictions imposed on him since 2023, banning him from contact with West Ham’s youth and women’s teams. The restrictions were ...

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...

Listening to Radio 5 I heard a Newcastle fan seeing the departure of Eddie Howe as a positive move.  My thought was ‘be careful what you wish for.’ Howe may well have run out of steam, but as Alan Shearer pointed out, the timing was odd.   More fundamentally, the strategy of the owners may be changing. The departure of Eddie Howe is the clearest sign yet that the Newcastle United of the near future is not the one many hoped for five years ago.     Newcastle’s strategy has shifted. Even as PIF remain in situ, the goal of quickly becoming a sustained, dominant force in the Premier League is fading with each day of this transfer window. Newcastle’s net spend across 2021-22 to 2023-24 was £408m, the fifth-highest in England and ahead of Liverpool and Manchester City. On a gross basis, they were the sixth-highest spenders on players. The wage bill jumped from 12th-highest in the division to eighth. A fallow year followed before spending ramped up again last s...

Time for a bit of boosterism for the Premier League at a time when commercial influences on football are under challenge.  Many fans are concerned about its dominance of the game and whether enough money trickles down to the EFL and grassroots football, although the Premier League would argue that it makes generous provision.   An agreement has finally been reached with the EFL on funding with the independent regulator hovering in the background with a figure of £1.5 bn being reported:  https://www.bbc.co.uk/sport/football/articles/cx2r015jjl0o The Premier League will add £33 billion to the UK economy and generate close to £15 billion in tax revenue over the next three seasons, according to analysis from EY. The economic value of England’s highest domestic football competition has grown 14-fold since the 1998-99 season, with record international viewing numbers and lucrative broadcasting rights creating one of the richest leagues in Europe. The economic contribut...