Skip to main content

Posts

Interlinked clubs can loan each other players

This week football’s simmering issues around multiclub ownership topped the agenda at a Premier League shareholder meeting. Eight clubs voted to block a proposed ban on interlinked clubs loaning each other players, meaning those in favour fell short of the two-thirds majority required to get their way. That means Newcastle United is clear to borrow footballers from the four Saudi Pro League teams owned by the kingdom’s sovereign wealth fund when the transfer window reopens in January. The vote itself shone a light on some of the tensions and contradictions within football over these issues. Some of the clubs that backed a ban have clear connections to other clubs, such as Crystal Palace through its shareholder Eagle Football, which also owns Olympique Lyonnais. Yet those that knocked down the rule change included teams that have no external ties, but perhaps have aspirations in that direction — Burnley, for example. The real benefits of multiclub ownership are still a subject o
Recent posts

The rejuvenation of Stockport County

Stockport’s upward trajectory — they are aiming for a third promotion in six seasons — is one of football’s feel-good stories, given it is only a few years since they were sleepwalking towards potential oblivion. Stockport are six points clear at the top of League Two 18 games into the 46-match season. There are plans to redevelop three sides of Edgeley Park, doubling its capacity to 20,000. A new training ground will also be built, with enough space to accommodate the academy and women’s teams. But it feels like even more of an achievement bearing in mind the challenges of living in the shadow of the two giants just up the road. Their Edgeley Park ground is six miles from the Etihad Stadium, the scene of City’s reinvention as the best football team in the country, even Europe. Old Trafford, where United used to hold that honour, is not much further on the other side of Mancunian Way. The new owner Stockport strayed dangerously close to slipping off the radar altogether befor

Strong set of financial results for City

Manchester City’s on-pitch success was replicated off the pitch, as they set new club records for both revenue and profit in 2022/23.  City’s pre-tax profit nearly doubled from £42m to £80m, as revenue surged by £100m (16%) from £613m to £713m, which was also the highest ever generated in England, and profit from player sales rose £54m (80%) from £68m to £122m. It is clear that City’s £80m pre-tax profit is an excellent performance, more than twice as much as the highest profit made by anyone in the previous season. This financial strength is very different from the large losses reported elsewhere, e.g. Chelsea £121m, Leicester City £92m and Newcastle United £73m. However, there was a price to pay for this success, as operating expenses also shot up by £113m (18%) from £641m to £754m. City have now reported a profit in every year since 2014/15, with the exception of the COVID-impacted 2019/20 season. Even including that sizeable £125m deficit, City are in the black to the tune of

United deal likely before turkeys roast

Sir Jim Ratcliffe is closing in on a roughly $33-per-share deal with the Glazer family that would see the British tycoon buy about 25 per cent of Manchester United. If agreed, the deal would value the Premier League club at about $5.4bn and implies an enterprise value of more than $6bn including debt based on the existing number of shares in issue There is a desire to get the deal agreed by the end of next week and before the US Thanksgiving holiday on November 23, according to people familiar with the matter. However, they cautioned that negotiations are ongoing, meaning the timeline could change.    Next week will mark one year since the Glazers, who have controlled United since a £790mn leveraged buyout in 2005, said they would consider a sale or an injection of capital from outside investors.  Ratcliffe’s flexibility and willingness to consider a range of proposals have been key to establishing him as the favourite to strike a deal.  United shares rose by more than 8.5 per

Perspective needed on Everton decision

Some of the reaction to the points deduction at Everton has been excitable and over speculative.  One might think it was the end of the Premier League as we know it.  As one spoof site commented, 'Manchester City to be relegated to National League North.' Everton are to appeal, but they did admit that they were in part in breach of the rules.   That said, they would regard the penalty applied as excessive.   However, I think their claim that they were transparent with the investigators will not carry much weight.   Tactically it shows a certain naivety (evasiveness and delay might have worked better), whilst saying 'we know we are outside the rules' is not much of an excuse. However, given Everton's upward curve on the pitch and the weakness of three potential candidates for relegation, I don't think that they are in any danger. If the appeal fails, Everton are likely to face legal action for compensation for four clubs relegated when they were breaking the rule

Sympathy for Everton, but the club did blunder

Breaking the Premier League’s profit and sustainability regulations over the three-year period ending in season 2021-22 has earned Everton a 10 point deduction, the first in the top flight.. Specifically, according to the findings of a regulatory commission, the club exceeded the permitted losses by a sum of £19.5million and “submitted misleading information about the stadium financing costs”. Even among rival fans, there was sympathy for Everton on Friday. Is financial mismanagement and errant book-keeping on this scale — an overspend of £19.5million higher than permitted over a three-year period in which the club finished 12th, 10th and 16th — really the most grievous offence committed by any club in the Premier League era? It is a legitimate question, even if those clubs relegated over that period are entitled to feel aggrieved that Everton breached the rules in staying up at their expense. Everton, who immediately announced their intention to appeal, called it a“wholly dispro

Rangers improve their finances

Rangers’ pre-tax loss in 2022/23 slightly increased from £2.2m to £3.1m, as revenue fell £3m (4%) from club record £87m to £84m and other operating income dropped £4m (82%) from £5m to £1m. Rangers’ revenue decrease was largely driven by having no European football after the group stage, which led to reductions in gate receipts & hospitality, down £2m (5%) from £42m to £40m, and commercial, down £1m (6%) from club record £20m to £19m. Broadcasting rose very slightly to £25m. Despite the lower revenue, Rangers still invested more money in the squad, as the wage bill increased £9m (17%) from £55m to a new club record of £64m.   This was partly due to bonuses for Champions League qualification. This means that wages have now grown seven years in a row, nearly quadrupling since promotion in 2016. Rangers’ results were boosted by their best ever profit from player sales of £23.6m, which was more than twice as much as prior year’s £11.2m, mainly due to the club record sale of Calvi