The Political Economy of Football V2

The founder of RedBird Capital Partners, Gerry Cadinale, bought AC Milan in 2022. A year ago, when the team was trailing in the Italian league and ultimately failed to qualify for European competitions, many of the 75,000 fans at San Siro regularly chanted “Cardinale devi vendere” — Cardinale must sell. Off the pitch, plans for a new stadium kept being stalled by Italy’s notorious bureaucracy. In the media, reporters speculated that Elliott Investment Management was the real power behind the throne at the club since the US hedge fund sold AC Milan to RedBird while also lending Cardinale’s firm money to finance the purchase. He quickly notes in a lunch interview with the Financial Times that he’s already made progress. Since he took charge, AC Milan has posted three consecutive years of record profits after decades of losses — though, as in politics, fiscal responsibility rarely wins applause from fans. He thinks, everybody expects him to come in with a ton of money to buy top players...

A bitter legal battle between the former owner of York City Jason McGill and the current owners could threaten the chances of the Minstermen returning to the EFL after a decade's absence. It is a complex dispute and one that has attracted the attention of the independent football regulator. McGill was credited with saving the club from oblivion with his loans, but he was a divisive figure and his relationship with the supporters' trust became strained. Julie-Anne Uggla is a 62-year-old British-Canadian entrepreneur and philanthropist who lives in north London. The purchase of a football club — she also looked at Yeovil Town — was prompted by a passion for the game she shares with her son, the two of them forming 394 Sports Ltd. At York, they have become popular owners, investing more than £6 million in the past two years in pursuit of promotion. Should the Ugglas be unsuccessful in challenging McGill’s demand, it could be ruinous for the club. As detailed in the High Court clai...

Charlton Athletic have published their annual accounts for 2024/25.  A big loss of £16.8m is slightly offset by player sales:  https://www.charltonafc.com/news/charlton-submits-annual-accounts-report Revenue was up from £8.8m to £11.2m, but the wages to turnover level was 141 per cent, double the recommended level. Turnover was up £2.3m to £11.1m. No single cause - broadcast revenue, matchday and commercial all up about £0.5m and “other” up £0.7m. Some of that reflects reaching the play-off final against the very poor 2023/24 season. Commercial is big increase relative to a very low base. Commercial increase probably relates at least in part to bringing retail in house, which means all sales appear in the club’s turnover and not just commission. It would be partially offset by increased cost. The operating loss is shown as debt to the parent company, interest free, repayable on demand, now £25m. Salary costs were up £3.6m to £15.7m, reflecting increased turnover, but non-f...

An in depth and well argued look at Sunderland's latest accounts from a fan perspective which argues that football success and financial strength have finally met in the middle  with a financial model built to last:  https://rokerreport.sbnation.com/opinion/131563/sunderland-afcs-financial-rise-a-model-built-to-last

As Exeter City emerges from a financial crisis which has led to budget cuts, it is evident that there have been offers of external investment.  This interview with the interim chairman illustrates some of the limitations of the fan ownership model:  https://www.devonlive.com/sport/football/football-news/exeter-city-open-investment-offers-10872138

My eldest lives down the road from the Coventry City training ground at Ryton.  During the years of exile at Northampton and Birmingham it was a forlorn sight, blighted by years of under investment.  Now high fences keep out inquisitive eyes.  A cluster of Sky Blues fans can usually be seen by the gate hoping to see players or even Frank Lampard himself. The Swiss Ramble has cast an inquisitive eye over the 2024/25 accounts for the Sky Blues.  As usual, the full picture is available on his Substack platform, but here are some highlights. Despite the improvement in the league, Coventry found life more difficult off the pitch, as they swung from an £8.7m pre-tax profit to a £21.6m loss, a decline of £30.3m in the bottom line. The positive was a large increase in revenue, which rose £4.8m (17%) from £29.3m to a club record £34.1m, but this was not enough to compensate for a significant reduction in profit from player sales, which dropped £20.6m from £23.7m to just £3.1m...