Skip to main content

Are non-league clubs sustainable?

Announcing this week that Bostik Premier Staines Town for sale, chairman Matthew Boon said: 'Non-League, especially at this level, is completely unsustainable. Unless there is help from above, I can't see how it can be sustainable. The outgoing costs, as they always have been in Non-League football, far outweigh what is coming in. But I think that gap is growing.'

To some extent it does depend on whether a club is run prudently or whether caution is thrown to the winds in pursuit of promotion. Worcester is a growing and prosperous city and should be able to support a top level non-league club, as it once did. Worcester City are now in the Midland League and could be forced to go 'fully amateur' next season. They dropped two levels at the end of last season to cut costs.

Club accounts revealed losses of £290,000 in the financial year to May 2017. It wiped out more than half the club's cash reserves. It is estimated that there will be £150,000 available at the end of the season which may not be enough for the homeless club to fund a new stadium at Parsonage Way. There was a £65,000 increase in payments to players in 2016-17 which, when added to the figures reported for the previous season, totals £350,000.

In contrast Leamington, now in the National League North, have been run on a prudent basis. When car park revenue from National Grid was unexpectedly lost in January 2017, the board of directors stepped up to the plate to purchase £29,000 worth of shares to cover a projected £24,000 loss.

It was anticipated that promotion to the National League would yield £74k in additional revenue and this has been realised with increased attendances (there are far more away fans), sponsorships and grants. The club has a total of five commercial sponsors, with Phillips 66 having the stadium naming rights.

Comments

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...