Skip to main content

The Premier League Division Two

An excellent piece of in depth analysis by Wigan fan Richard Pike about the Championship: New financial realities

He points out that the Championship is increasingly becoming like a Premier League Division Two. One would be hard pressed to find a second tier league anywhere else in world football with so much prestige. He argues that a growing gap is emerging between the Championship and Leagues One and Two.

Ten year income projections suggest that by 2027 each Championship club will receive an average of £13m each season from solidarity payments from the Premier League and the television deal, an increase of £6m on the current figure. League One clubs will see their income from these sources go up by only £0.25m from £2m. League Two clubs will see only the same £0.25m increase from £1.5m to £1.75m.

He makes an interesting comparison between Sheffield United and Bolton Wanderers. Sheffield has a population of over half a million and is able to sustain two Championship clubs.

One general argument he makes is that city clubs have an advantage over town clubs with an increasing presence in the Championship. In the Premier League there are only four town clubs: Watford, Huddersfield, Burnley and Bournemouth. I wouldn't count Watford as I regard it as an outer London club, albeit one punching above its weight. He later admits that it is just a 20 minute train ride from London.

He also discusses Barnsley as an example of where good management, good scouting and good recruiting can make a difference. He doesn't discuss the fact that Barnsley have new owners who have ambitions to see them in the Premier League. Of course, many clubs have such an ambition: achieving it is another matter.

In the Championship, there are just seven town clubs out of 24, compared with twelve or half in 1999-2000. There is also an interesting contrast with the situation in Italy and Spain which he discusses.

The advantage enjoyed by city clubs with their large stadium capacities does not necessarily work in a huge city like London. A club like Brentford has to compete with historically larger neighbouring clubs such as Chelsea, Fulham and QPR.

Comments

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Reports about Charlton sale exaggerated

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...

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do