The Political Economy of Football V2

Tottenham Hotspur are in talks with NFL's Oakland Raiders about a full NFL season eight game ground share in 2019. Oakland Raiders are currently homeless after a move to Las Vegas and a legal dispute with the city of Oakland, although a move to San Francisco is a possibility: NFL ground share The NFL is keen on the idea of a London franchise and the new White Hart Lane stadium is fully equipped for the NFL. Given that the stadium is over budget, a ground share would provide a useful cash boost for Spurs.

Kieran Maguire of the PriceofFootball takes an in depth look at Everton's finances: The long and winding road He asks, 'An analysis of Everton’s accounts shows that the club is in a far better place under Moshiri, but is this enough for them to challenge the ‘Big Six’ or should expectations be more focussed on being the best of the rest?' He concludes, 'Whilst the club is playing at Goodison there is little scope to increase income, and every year until a new stadium is open for business will increase the gap between the club and the "Big Six", all of whom have competitive advantages in terms of income generating capacity and facilities.' 'Until the new stadium arrives, unless Moshiri is willing and able to underwrite substantial losses (which could cause financial fair play problems should Everton qualify for UEFA competitions) then realistically seventh place and entertaining football is the realistic target for the club.'

Kieran Maguire of the PriceofFootball takes an in depth look at West Ham's finances: Hammers Maguire concludes: 'West Ham’s promises of a financial boost following the move to the London Stadium has not to date materialised, although the uneasy relationship with fans that resulted in hostility towards the board has been reduced to simmering resentment as results have improved under Pelligrini.' 'Whilst there is scope for income to increase if the capacity of the London Stadium is allowed to reach its maximum potential, realistically the gap between the club’s finances under the present owners, and that of the ‘Big Six’, is likely to result in the annual battle being with the likes of Everton. Leicester and whoever else is showing some short term form (last year Burnley, this year Wolves and Bournemouth) for the less than coveted title of "Best of the rest".' 'Whether fans who have sacrificed their historical home at Upton Park will think this is a ...

The football game was for a long time a big feature of Christmas Day, but falling attendances and their unpopularity with players who could not enjoy a family Christmas brought them to an end: The end of Christmas Day football Christmas Day football was often characterised by the smell of cheap cigars. Wills's Whiffs could be bought in a pack of five and were a favourite Christmas present for the man of the house: Ladies be kind

Liverpool are in talks with New Balance about a potential new kit deal from 2020 that would surpass the £75m a year earned by Manchester United from Adidas. Liverpool's current deal is worth £45m a year: Record kit deal Chelsea have a £60m a year deal with Nike, while Manchester City's deal, also with Nike, is worth £41m a year. Arsenal and Spurs have deals worth £30m a year each with Puma and Nike respectively. You can find a very useful table on Premier League shirt sponsorship deals here, topped by Manchester United at £47m a year with Brighton and Huddersfield Town realising just £1.5m: Shirt sponsorship

Not only are Luton riding high in League One, but they also have hopes of leaving behind their atmospheric but somewhat ramshackle Kenilworth Road home after 113 years there. January will be a key month for the future of Luton with Luton council finally to decide on planning applications for a new 17,500 capacity stadium in the centre of town, financed by a mixed use office, hotel and retail site off Junction 10 of the M1. It is just ten years since the Hatters left the Football League with a 30-point deduction that led to a five year exile in the non-league system. The club is run by a consortium of local businessmen and supporters who continue to provide investment. The club has refused sponsorship from betting companies since 2011 at a time when many clubs rely on it.

The authoritative Swiss Ramble has been hard at work on Christmas Eve taking a look at the accounts of West Ham United. West Ham’s 2017/18 financial results covered their second season at the new London Stadium, which the club described as 'difficult'. Profit before tax reduced by £25m from £43m to £18m, as revenue fell by £8m (4%) to £175m, though profit on player sales was up £2m to £30m. Despite the revenue decline, wages increased by £12m (12%) to £107m. Match receipts were £4.1m (14%) lower at £24.5m, due to no Europa League; while commercial fell £3m (9%) to £32m, mainly due to one-offs in the previous year; and broadcasting was slightly lower at £119m, due to lower Premier League place. Only one Premier League club made a loss in 16/17, but the Swiss Ramble notes that financial results are normally worse in the second year of the TV deal, which is the case in 17/18. Despite the lower West Ham United profit, their £18m is actually second best of clubs that have report...

Millwall made a loss of £74,000 a week in 2017/18 despite income up a third following promotion to Championship. That amounted to an annual total of £3.8m, down from £4.0m the year before. The losses are reasonable compared to other clubs in the division. Revenue for the year was £15.6m, up 56 per cent. Matchday income was up 10% but main reason for the revenue rise was higher TV money due to being in the Championship. Premier League solidarity income was £4.8m. Commercial revenue was up by 12 per cent. Millwall's wage bill was up 43% to £13.4 million. This compares to an average wage bill in division of £23 million. It represents 86 per cent of turnover, well above the recommended level of 50 per cent, but many clubs in the Championship have higher ratios. Millwall spent just over £1.1 million on players in 2017/18. Player sales were zero. Millwall owed its parent company nearly £91 million at 30 June 2018. This sum is interest free. Revenue streams this year are expe...

Blackpool's Owen Oyston has been voted worst English football club owner by fans, followed by Mike Ashley at Newcastle and Roland Duchatelet at Charlton Athletic: Top ten worst owners 3,376 fans from 139 clubs responded to the survey.

West Ham have announced their financial results for 2017/18. Decreased income and higher costs meant that West Ham went from a profit excluding one off items of £11 million to a loss of more than £6 million. Matchday income for 2017/18 lower than the final season at the Boleyn (although that season included special events which boosted income). West Ham commercial income was also down as tensions between club and fans over failures at new stadium made the club less popular with sponsors. Despite a decrease in income of four per cent overall, wages continue to rise, and have more than doubled since 2013. West Ham paid out £60 in wages for every £100 in income, compared to £52 the previous season. Since the end of May West Ham spent £89 million on new players, borrowed £23 million which will be repaid from TV money and paid Gold and Sullivan £4.5 million cash interest at 4.25% interest. Net player trading cost £3.1 million in 2017/18. West Ham borrowings fell from £75m to £64m in ...

The authoritative Swiss Ramble has examined Everton's accounts for 2017/18. The club went from a profit of £31m to a loss of £13m, a £44m deterioration, despite revenue growing by 10% (£18m) to a record £189m and profit on player sales up £36m to £88m, due to a huge increase (£70m) in player costs (wages and player amortisation) and £34m of exceptional items. These included changes in management (£14m) and new stadium costs (£11m). Everton have now reported losses three times in the last four seasons with the exception being the £31m profit in 2017. In fact, in the 13 years since 2005, Everton have only been profitable four times – and one of those was just £26k (in 2008). Only one Premier League club made a loss in 2016/17, thanks to massive TV money allied with wage controls, but two of the five clubs that have reported to date in 2017/18 are loss-making: Everton and Stoke £30m. In contrast, there were solid profits at the two Manchester clubs and Brighton. The loss at Everto...

It's been a long drawn out saga, but Charlton manager Lee Bowyer is hopeful that the takeover of the club could be completed by the January transfer window: Takeover close The likely purchasers are the Australian-based consortium that has been involved for over a year, but it is understood that the composition of the consortium has changed.

Sheffield Wednesday has been put up for sale by its Thai owner Dejphon Chansiri who bought in early 2015 from Milan Mandaric: Owls sale Recently the club has seen problems off the field, with the Owls placed under a transfer embargo between April and August this year after breaching Financial Fair Play (FFP) rules. Under the English Football League's profitability and sustainability rules clubs are not allowed to post losses in excess of £39m over three years without punishment. The last available financial figures show the Owls lost more than £20m in 2016-17, an increase of £15m on the previous year.

Kidderminster Harriers chairman Colin Gordon has sought to reassure fans after the club was the subject of a winding up order from HMRC earlier this month: Answers fans concerns He admitted that things were very tight for the club and he had inherited a financial black hole. However, they were edging towards sustainability. He commented, 'The amount of money being paid to what were very average footballers and the amount spent on paying off players and staff was crippling, and you can’t just plug the gap that this creates. Again, we historically have constantly had to "pull forward" monies and it isn’t the way to operate. The only thing I would accept that could be levied at us as a criticism is that we do overspend on the overall first team budget.' He sees as a new stadium as key to the club's long-term development.

That is the conclusion of an article by Oliver Kay about Manchester United in The Times this morning. Kay argues, 'For the past five years since [Sir Alex] Ferguson's retirement, the most influential person at Old Trafford has been executive vice-chairman Ed Woodward, the investment banker who, having conceived the leveraged buy out of the club while at JP Morgan, effectively invented what United supporters grudgingly call "Glazernomics"' Kay notes that while Woodward 'has handed over extravagant transfer fees and/or exorbitant contracts for players who fit is commercial vision while investing modestly in defenders.' The Glazers' ownership of United has cost more than £1 billion in interest repayments, bond buybacks, financing costs and management fees. In 2018 Glazernomics cost a £22 million dividend for themselves and £18 million in interest charges to banks. It cost Manchester United £4.9m to sack Moyes in 2014 and £8.4 million to sack Louis v...

An Everton fan takes a look at the club;s 2017/18 accounts: Return to losses. He comments, 'The story of this year’s accounts is one of huge spending with increases way beyond the increases in income funded by player sales, capital injections from Moshiri, the use of debt facilities and some increase in commercial income. Whatever criticism comes the way of the club, in terms of manager and player recruitment, plus delays in the stadium development, there can be no doubting [Farhad] Moshiri’s financial commitment to the club which now stands at £250 million – and this before the stadium is financed with the exception of existing development costs.' Revenues increased by 10.4% to a record £189.2m – largely due to an increase in commercial activities outside of sponsorship, advertising and merchandising, namely participation in the Europa League. There was a record player trading profit of £87.8m following sale of Lukaku, Cleverly, Deulofeu and Barkley. The club showed an ...

Blackburn Rovers Holding Company Venkys London have announced losses of £15 million for 2017/18, when the club was in League 1 and promoted at the end of the season. The losses are a League 1 record. Blackburn total losses under the Venkys have been £124 million. Blackburn income was down £6 million mainly due to lower TV revenues in League 1 but still high by division standards. Blackburn wage bill was down £7 million to £15.7 million and 19 fewer employees. The wage bill is likely to be highest in division for 2017/18 and more than double the average. Venkys invested a further £19 million in the form of shares last season to keep Blackburn afloat.

Tottenham Hotspur have said that a roof leak at their new stadium is a minor problem that can be easily sorted out and won't delay the opening date. This is the second water leak to affect the stadium after a mains water pipe burst in August flooding an underground area. Pools of water have appeared in the single tier stand modelled on Borussia Dortmund's so-called 'Yellow Wall'. With a capacity of 17,500 it will be the biggest stand in the Premier League when it opens next year. The familiarisation event for 6,000 fans on Sunday went well with many glowing reports. Fans particularly liked the proximity of the stands to the pitch, a drawback of West Ham's London Stadium. The club's main focus now is to get the stadium open for their Champions League match against Borussia Dortmund on February 13th, which will require special dispensation from Uefa as their group stage games were played at Wembley. The league game against Manchester United on January 13th w...

New Bury owner Steve Dale, who has had had experience with a number of distressed companies, is determined to sort out the financial mess at the club: New owner He commented, 'The problems that need to be resolved are that our wage bill is quite heavy and the problems of having no money bring their own problems in legal fees - which are well into six figures - that we’ll be seeing in the accounts for next year.'

The sports streaming service launched by Leeds owner Andrea Radrizzani, Eleven Sports UK, is in financial trouble with reports of £30m owing to creditors and could be forced to close: Financial problems This need not have any financial implications for Leeds United. However, one view is that there could now be added pressure on Leeds to achieve promotion this season because of fears over cash-flow issues. Leeds insist that it is business as usual, and sources have said Radrizzani is in talks to restructure the UK company and is hopeful of finding a solution.

Brighton made a profit of nearly £13m in their first Premier League season compared to losses of £39m in the Championship the previous season. Brighton income was up 378% to £139m following their first season in the Premier League. The impact of promotion to the top flight is shown by the fact that the club generated nearly as much income last season as they did in the six seasons at the Amex stadium in the Championship. The importance of broadcasting income is highlighted by TV money going from 26% to 79% of Brighton's total income in 2017/18. Brighton's wage to income percentage fell to a healthy 56% in 2018 from 107% the previous season. Brighton spent £57m on players in their first Premier League season, a record for the club but modest by Premier League standards. Despite the club making a profit, owner Tony Bloom continued to invest in Brighton by lending the club a further £32 million, taking his total investment to £318 million. Displaying commendable transparency...

Bury FC are facing financial challenges again. The club has managed to lose £10.5 million in last five years. The club has been losing £50,000 a week and appears to have many county court judgements arising recently. It is, of course, difficult to make a profit in the lower leagues and much can depend on fortuitous player sales. The club has issued a rather opaque statement to supporters: Club statement

Tottenham Hotspur would like to open their new stadium with the game against Manchester United on January 13th, but that is looking less likely. They are finding it difficult to stage test events over Christmas. The club must hold several events to gain a safety certificate. The club had scheduled test events for successive Sundays on December 30th and January 6th but the first date is proving problematic because of a shortage of staff and police resources in the run up to new year. The next home game after the Manchester United fixture is the visit of Watford, but that is not ideal as it is a Wednesday night on the eve of transfer deadline day. Tottenham are at home to Newcastle on the following Saturday, February 2nd. 6,000 fans selected by ballot will have a tour of the stadium on Sunday.

Losses have doubled at Chesterfield, now playing in the National League: 2017/18 accounts CFC 2001 Limited closed the year reporting a loss of £1,061,270 compared to a loss in the previous year of £506,735. Turnover was down by £756,170 on the previous year, cumulating from reduction of gate and season ticket revenue of £134,602, TV and Football Awards monies of £302,899, commercial income was lower by £138,735 and other income down by £334,236. Chesterfield income was down 16% in 2017/18 in League 2. One can expect another substantial fall in 2018/19 as the club is in the National League instead of League Two. Chesterfield's borrowings from directors have gone through the £10 million barrier as further loans were taken out to allow the club to pay the bills. Kieran Maguire of the PriceofFootball notes, 'Chesterfield level of debt puts it 47th in the list of English, Welsh and Scottish clubs, just behind Celtic, who did the treble and played in the Champions League last se...

It's a familiar story. An apparently wealthy individual buys a non-league club and promises Football League status within a few years. Success proves to be costly and the money runs out. The owner sells up and the dream is over. It is what has happened at Billericay Town. The club, which has been running with a reported £22,000 a week wage bill, is set to be taken over by Irish businessman David McCartney, but only if he can make it sustainable by slashing players' wages to £10,000 a week, still a lot for the second tier of the non-league pyramid. Owner Glenn Tamplin has not been seen at the club for three weeks and it is believed that he no longer has the funds to meet the running costs. According to a report in the Non-League Paper some players and staff have not been paid. A number of players have left. Glenn Tamplin bought the club in December 2016 and promised to get them in the Football League within five years. His business career was apparently based on liqu...

The future of Coventry City football club is under threat. There is no deal for them to play at the Ricoh Arena after the end of this season and they are in dispute with their landlords, Wasps. The club has issued an open letter to supporters setting out their view of the situation: Ricoh Arena The Premiership rugby club have said that they will not engage in talks unless the owners of the football club cease their legal action against them.

Ipswich Town have announced their accounts for 2017/18. Income was slightly down but perhaps the key issue is that TV accounts for nearly half of income and will fall from £7m to about £0.7m if the club is relegated to League One. The biggest cost for Ipswich is wages, the club paid £108 in these for every £100 of income, although this is far from unusual in the Championship where costs are more out of control than in any division. Gate receipts fell from £5.1m to £4.7m. Season ticket sales dropped by almost 2,000 for the second year in a row (12,022 down to 10,144), though there was only a slight drop in average league attendances (16,271 compared to 16,980). Ipswich lost £160,000 a week in trading last season, bringing total losses in the last seven years to £57 million. Marcus Evans now has lent £95 million to the club, as well as investing another £5m in shares. Reports that the club has been put up for sale have been denied: Sale reports

The authoritative Swiss Ramble takes a look at Bayern Munich's latest accounts. They are one of the most profitable clubs in Europe. Indeed, they have the highest profit before tax (€46m) of any of the leading clubs that have published 17/18 accounts to date. Amazingly, this is the 26th consecutive year that Bayern have been profitable. Profit before tax fell from €66m to €46m (profit after tax €29m). Revenue (per Bayern’s definition) rose €17m (3%) to a record high of €657m including €28m profit on player sales, mainly Douglas Costa to Juventus. The board described the figures as 'outstanding'. Bayern Munich have become increasingly reliant on player sales with average annual profits rising from just €11m between 2009 and 2013 to €41m in the last five years. Excluding player sales, revenue has grown by a third (€155m) in the last three years from €474m to €629m, mainly from broadcasting €71m (67%) and commercial €71m (25%) with match day up €14m (16%). Revenue has double...

The excellent two unfortunates site is back in business with a series of assessments of the fortunes of particular clubs in the medium term. They start with Crewe Alexandria: Crewe health check Paul Wilkinson admits that the club has suffered reputational damage from the sexual abuse scandal and board wrangling. He writes, 'Unable to command regular large matchday attendances, Crewe Alexandra is therefore an economically challenged club unable to pay its players the tempting wages offered by other clubs even within the same division. Its Academy was once renowned as a talent production line, but changes to how clubs are rewarded for nurturing that talent have made the Academy less economic to run.' He concludes, 'Dario Gradi and John Bowler did much to transform the reputation of Crewe Alexandra Football Club, but there is a very real risk that everything they achieved could come tumbling down unless some strong decisions are taken, and soon. The Railwaymen supporters ...

Manchester City were the biggest beneficiaries from the £164m handed out by Fifa to clubs that released players for the World Cup in Russia. City will receive £3.9m, Real Madrid £3.7m, Tottenham Hotspur £3.5m, Barcelona £3.2m and Paris Saint-Germain £3.1m. Chelsea receive £3m and Manchester United £2.9m. Hull City received £645k and Sunderland £536k, more than ten Premier League Clubs (Bournemouth and Cardiff City received nothing). Three smaller Premier League clubs received between £450k and £500k: Burnley, Crystal Palace and Huddersfield. Ipswich will be paid £420k. Fifa pays £6,700 per day for any player released for the World Cup. English clubs will receive £29.4m in total, more than any other country. 38 English clubs received payments.

A new football app called Otto has signed up sixteen players including Neymar and Lionel Messi. The idea is to give the players a platform where they can share stories with fans. Premium content has to be paid for, of course. Otto is Spanish for 'other' and the idea is that this will be their other club. It is calculated that there are 1.1 billion people who like football and have a smartphone. Only a small portion of this market will have to be captured for the project to succeed. Arguably fans are more interested in content related to their own club, and not super stars who may play for rival clubs, but we shall see. The project is funded by 23 Capital, a London-based investor. It has provided $50m of funding. An investment fund managed by Soros Fund Management is among the backers.

Mike Ashley has said that he hopes to complete the sale of Newcastle United before the January transfer window. He also said that he has not settled on a single candidate which implies a tight timetable. In recent weeks it has been reported that Peter Kenyon, the former Chelsea and Manchester United director, is trying to raise funds to buy the club. There have also been rumours about the emergence of a group of Turkish buyers. Peter Kenyon has subsequently been confirmed as head of a consortium seeking to buy the club: Kenyon Putting a price on Newcastle is not easy as they do not really have a Premier League squad and are not free of the risk of relegation. The present asking price is £325m. Any new owner would need the funds to strengthen the team.