The Political Economy of Football V2

The average turnover of a club in the National League North is now just over £700,000 a year and the average playing budget is £268,000. This reflects the fact that there are a number of former Football League clubs in the division. However, a number of clubs have much smaller turnovers and playing budgets. The recently released accounts of one club for 2017/18 show a turnover of £294k and a player budget of £190k. Advertising and sponsorship was the biggest income stream at £90k while match receipts amounted to £77k. A donation of £10k was received for a player transferred to a Championship club. A £18k contribution was received from the National League from Premier League distributions and their own sponsorships. Individual directors bought £25k of shares to cover a projected £18k end year loss.

Portsmouth lost £35,000 a week in 2017/18, but player sales helped to reduce this by a quarter (net profit of £475k). Matchday, broadcast and commercial income are all showing good growth for Portsmouth. Wages of £65 for every £100 of income, below the recommended Uefa level, show that financial controls are in place. Turnover was up from £7.9m to £8.5m. 52 per cent of turnover at £4.6m came from ticket sales. The next biggest item was the Football League basic award at just under £2m. Portsmouth may have to pay former owners £3m or £4m (depending on the date of promotion) if promoted to the Premier League in the next few years. The full accounts are available here: Portsmouth accounts

Wrexham FC reckons that it benefits from fan ownership. Although income was down, the operating loss was just £36,000 last year and fans have invested £1m in the club, not counting their volunteer labour: Solid set of accounts

Scunthorpe United lost £83,000 a week in 2017/18. The main reason for Scunthorpe's losses were wages which were £152 for every £100 of income, way above the Uefa recommended level of 70 per cent. Turnover increased very marginally at £4.18m. The loss for the financial year was £3.6m. The biggest income item was the league central distribution, up marginally at £1.43m. Gate receipts and ticket sales fell very slightly at £1.06m. Player purchases were £10k and sales £350k. Scunthorpe were dependent upon £9m of loans from parent co Coolsilk, who charged £200k interest on these.

Charlton had an operating loss of £256,000 a week last season in League One to take total historic losses to just under £60 million. Wages were £140 for every £100 of income, way above the 70 per cent level recommended by Uefa. Katrien Miere's salary not disclosed as she was chief executive but not a director (she resigned during the financial year). Charlton paid redundancy costs of £374k in 2017/18. In terms of player trading purchases were £310k and sales £4.4 million. The profit on player trading reduced the operating loss from £13.4m to £10.1m. Match day income at £3.4m accounted for 46 per cent of the total. It was marginally up by 7 per cent from £3.2m. EFL and Premier League distributions fell by 21 per cent from £1.8m to £1.4m. The EFL distributions dropped from £1.2m to £0.7m and the Premier League solidarity payment increased from £0.6m to £0.7m. Commercial income increased by 8 per cent to £1.4m, helped by the run in to the play offs. The strategic report sta

Burnley's accounts for 2017/18 show that day to day profits were down £11 million but sale of Keane and Gray generated a £30 million profit to more than make up for it. The7th place finish in Premier League generated more prize money which was the driving force behind £17 million increase in income for Burnley. Player trading consisted of purchases at £43.5m and sales of £36 million. The total squad cost £95m at 30 June 2018. The Chairman states in his report, 'Following the successful retention of our Premier League status at the third time of asking in 2016/17, I felt it was absolutely essential that we should avoid the dreaded "second season" syndrome and as a result we continued to invest in new playing talent whilst trading players where we felt that they might be at, or close to, the peak of their value.' Wages grew from £61m to £81m, an increase of £20m on the previous season, as a result of a determination to be more competitive in the market, coupled

Fulham have published their financial results for 2017/18 showing the price of getting to the Premier League was losing £1,137,000 a week in 2017/18. Between themFulham, Wolves and Cardiff City lost £158 million last season (and Cardiff were in receipt of parachute payments). Fulham’s total losses over the years now £339 million. Fulham had further loans of £40 million from parent Cougar Holdco last year. Fulham paid £142 in wages last season for every £100 of income despite receiving parachute payments. Fulham player trading in 2017/18 was purchases £30.5 million and sales £18 million. Fulham have confirmed a net spend of £118 million since June 2018 on player signings.

Top football finance analyst Kieran Maguire takes an in depth look at the finances of Bournemouth: Boom-Boom-Ba-Ba-Boom He finds that financial results are not as impressive as those on the pitch. He concludes, 'Bournemouth continue to defy the odds in terms of reasonable finishes in the Premier League, an attractive style of play and developing good young players. The level of investment in the squad in 2017/18, especially in terms of player wages, is not sustainable at the present rate of growth and could result in a breach of FFP rules.' 'An over reliance on broadcast income is only a genuine problem if the club is relegated and there appears to be little chance of that happening provided the club holds onto its best players.'

Liverpool are just one of five clubs in the world that sell over one million shirts a year. It puts them in a strong position for the kit negotiating contracts starting in 2020/21. The other four clubs are Real Madrid, Manchester United, Bayern Munich and Barcelona: World shirt sales

Modest spending by Huddersfield meant the club had the highest operating profit of any club in the Premier League last season. The club reversed a loss of £22 million in the Championship to a profit of £23 million in their first season in the Premier League. Dean Hoyle lent the club £16.8 million following promotion to ensure it was ready for the Premier League but the club’s success and retention of its place in the Premier League allowed it to repay this and a bit more. They still owed him £49m at 30 June 2018. Turnover increased from £15.8m to £125.2m. Overall employee costs increased by 188 per cent to £62.6m. They represented a healthy 50 per cent of turnover. The club continued to invest in infrastructure with capital expenditure of £5.1m. The club has plans for a major redevelopment of its training complex, PPG Canalside. The public provision housed there would be moved to a new facility at Leeds Road. Matchday at £4.8m accounted for just four per cent of total revenue.

AFC Bournemouth lost £209,000 a week in 2017/18 compared to profit of £305,000 a week the previous season (which was 11 months long for accounts). Bournemouth are the 10th Premier League club out of 13 who have reported to date who have made a loss. The operating loss was £9.1m. Turnover was down £1.6m to £134.9m, mainly because of a slightly lower finishing position in the league. Bournemouth accumulated losses over the years are £59 million. Sponsorship and advertising was up from £3.6m to £6.8m, exceeding match and season ticket income at £5.3m. 89% of Bournemouth’s income came from broadcasting in 2017/18 despite TV money falling by £5m. Bournemouth borrowed £30.7 million from owners and repaid loans of £14 million in 2017/18. Bournemouth owe its British Virgin Islands parent company £45.6 million and its US based minority owner £26.5 million. Bournemouth wage bill rose 55% in 2017/18 compared to previous 11 month period and paid out £102 million in wages. Total staff wage

Gillingham accounts for 2017/18 show £180k profit for £2017/18 but it would have been a £1.5m loss without player sales and ‘independent school’ income. Ticket sale revenue down 24% was the major concern. Turnover was up from £6.3m to £7m. Wages and salaries at £3.8m were a healthy 50 per cent of turnover. Broadcasting revenue declined very marginally at £1.43m. Transfer fees were up from £674k to £1.13m. Gillingham chairman Paul Scally owed the club £90k at 31 May 2018 and was paid £311k for ‘consultancy services’ for 2017/18.

Kieran Maguire has been interviewed about the prospects for Hull City as turnover plummets and the wage bill faces being cut. He comments, 'The challenge the club has is that it’s going from a business which in 2017 earned a £117m to generating around about £20m in 2020.' Read the full interview here: Tumbling income

The authoritative Swiss Ramble has taken a look at Ipswich Town's results for 2017/18, their 16th successive season in the Championship. Their loss increased by £0.9m from £4.3m to £5.2m, as revenue dropped slightly (£0.1m) to £17.1m and profit on player sales fell £0.3m to £3.8m. Wages up £0.8m (4%) to £18.5m, Gate receipts continued to fall, down £0.4m (8%) to £4.7m, but this was largely offset by an increase in the central TV distribution, which meant broadcasting income rose £0.3m (4%) to £8.1m. Commercial revenue was unchanged at £4.4m. Almost all Championship clubs lose money, so Ipswich's £5m loss is actually one of the smallest of the clubs that have reported so far in 2017/18. Only four clubs made money, while seven clubs have posted losses above £20m. The £4m profit on player sales was largely due to the transfers of Adam Webster to Bristol City and Kieffer Moore to Barnsley. This is far below the large profits clubs recently relegated from the Premier League made

Kieran Maguire of the PriceofFootball comments, 'Bolton winding up orders, Villa nearly in liquidation last summer, Derby up for sale as owner fed up sticking in £3m a months, Swansea threatening redundancies. Why is the Championship such a mess? In the last five years total income was £2,813 million and total wages £2,869 million.' 'In the last five seasons losses racked up by Championship clubs come to £1,689,000,000 & that's before we see the 2018 figures for a number of clubs not yet published. All of this in an FFP/P&S environment. Sustainable?' 'Player signings increased by 384% in the Championship between 2014 and 2017. bigger fees bigger wages, but not for one season, usually three, four or five as clubs fear losing players and so tie them to long deals. If they turn out to be Ross McCormack you've got a big fat problem for years.'

Top football finance expert Kieran Maguire reviews how Birmingham City, Blackburn Rovers and Bolton Wanderers arrived at their present plight: The three B's As Maguire notes in relation to Birmingham City, 'Whoever chooses to take on the responsibility of running a Championship football club will realistically have to be prepared to pay out huge sums every month to keep the club afloat, in either an attempt to keep the club from League One, where clubs earn broadcast income of about £1m or achieve promotion to the Premier League where they can earn a minimum of £100m. But as we have seen with Birmingham, pushing the boat out too far can have consequences.

The authoritative Swiss Ramble takes a look at the accounts of Paris Saint Germain. PSG were acquired in 2011 by Qatar Sports Investments (QSI), a subsidiary of Qatar's sovereign wealth fund Qatar Investment Authority (QIA), making the club by far the richest in France and one of the wealthiest in the world. Nasser Al-Khelaifi is the club’s chairman and CEO. Pre-tax PSG went from a €19m loss to a €40m profit, a €59m improvement. Revenue (DNCG -the organisation that monitors the accounts of French football clubs - definition) rose €54m (11%) from €503m to a record high of €557m, while profit on player sales shot up €132m to €145m. This was partially offset by significant cost growth. The €557m revenue is more than five times as much as €101m reported in 2011, i.e. before the QSI acquisition. Majority of the increase has come from commercial €343m, but also good growth in broadcasting €83m and gate receipts €30m. Looked at another way, PSG alone generated around a third of total r

Port Vale owner Norman Smurthwaite has threatened to put Port Vale into administration if a buyer is not found by May 5th (the club and the ground are owned by separate companies in turn owned by Smurthwaite: Port Vale Carol and Kevin Shanahan, who own Stoke-on-Trent-based IT company Synectics Solutions, have made three attempts to buy the club, the last valued at £4m. Like Roland Duchatelet at Charlton, Smurthwaite is blaming protests by fans for the plight of the club.

There is concern that whereas smaller clubs comply with Uefa rulings on financial fair play, big clubs employ legal teams to challenge Uefa's decisions or use creative schemes to avoid punishment for overspending. Efforts by some of Europe's biggest teams to circumvent FFP have put the future of the regulatory regime in doubt. This in spite of the fact that Uefa claims that it is a success with clubs making a combined profit of €600m in 2017 compared with a combined loss of €1.7bn in 2011. One possible way forward is to reduce the complexity of FFP rules by placing focus on the source of a club's revenues. The rules are intended to ensure that clubs break even or, at most, have €30m of losses over three seasons. Last week Paris Saint-Germain successfully challenged an investigation into the club's claimed breaches of FFP rules in the past. AC Milan and Galatasaray have also lodged successful appeals against Uefa in FFP-related cases over the past year. They took

Kieran Maguire of the PriceofFootball takes an in depth look at Aston Villa's finances and concludes that they should escape financial fair play sanctions: Doctoring the Tardis He notes, 'Every club in the Championship (with the possible exception of Leeds) would like to be in Villa’s position in terms of commercial income as the benefits of a being a big city club and a legacy of the time spend in the Premier League make it attractive compared to much of the competition.' 'Running up huge wage costs was one of the reasons why Tony Xia nearly destroyed Villa as the club was effectively paying out Premier League salaries whilst in its second season in the Championship by recruiting the likes of John Terry and Robert Snodgrass on loan as well as the legacy of previous disastrous purchases such as Scott Hogan on lucrative contracts which meant they could not be moved on. Usually relegated clubs reduce wages in the second season following relegation from the Premier Lea

As part of the visit of President Xi Jinping to Italy, where he is receiving a warm welcome from the populist government, Serie A is planning to stage a football match in China. Italy is breaking from other G7 countries to sign up to China's Belt and Road Initiative, a plan to increase Beijing's international influence. Mr Xi is a keen football fan. Executives from Serie A and the country's football federation are in talks with the China Media Group. The Italian federation will propose a multi-year agreement to provide assistance to Chinese companies looking to invest in Serie A clubs and will supply multimedia content for China media channels. The plan will almost certainly require Fifa approval and Fifa opposition led Spain's La Liga to postpone plans to hold a competitive fixture in the US this season.

Birmingham City have been given an immediate 9-point deduction for breaching the EFL’s rules on Profitability and Sustainability, Sky and the BBC are reporting The sanction would see Blues drop from 13th to 18th in the Championship, five points above the relegation zone with eight games to play. Losses in excess of £13m per year over a three-year period are not accepted under EFL rules. it is understood that there will be no further financial penalties for the club, nor would they be under a future transfer embargo relating to this issue. They are the first club to be deducted points since the EFL introduced its new profitability and sustainability regulations at the start of the 2016-17 season. In January Birmingham revealed a £37.5m loss in the 12 months to the end of June 2018, largely a result of their wage bill rising from £22m to almost £38m. Once again, fans suffer from mismanagement. The full report on the decision can be read here: Decision Harry Redknapp's steward

Blackburn's net losses in 2017/18 were more than twice that of any other club in League 1 last season and represent 67% of total losses of the division. Blackburn lost £336,000 a week in 2017/18 in League One. Blackburn paid £187 in wages for every £100 of income in 2017/18 in League One. Blackburn had the highest wages bill, average weekly wage and wage to income percentage in League One in 2017/18. Nevertheless, the overall wage bill was down 24 per cent. Following promotion back to Championship Rovers spent a net £7.6 million on transfers in 2018/19. Blackburn player trading 2017/18: purchases £867k sales £1.2 million.

Mel Morris is considering selling Derby County for a token £1 if he can get his debts repaid. The Candy Crush tycoon has been Derby's owner since 2015 and is understood to have put £161m into the club. He is understood to have received several proposals from interested parties in America and the Far East who would be willing to take on a percentage of the club's debt plus further staged payments if Derby are promoted to the Premier League. The club's latest published accounts in June 2017 show that Morris had lent the holding company that owns Derby, Sevco, £95m - a figure that will have increased substantially since then as they are losing between £1m and £2m a month. Every club in the Championship is losing money even with parachute payments and financial fair play. The lure of the Premier League is such that caution is thrown to the winds.

AFC Wimbledon made a net loss of £507k in 2017/18 compared with a profit of £50k in the preceding year. This was partly due to £200k of set up costs for the new stadium. Kingsmeadow was sold to Chelsea for £7.5m and is being occupied rent free until the new stadium is ready. Turnover was up marginally from £4.87m to £5.05m. Match receipts accounted for 57 per cent of income. Sponsorship and advertising accounted for 12 per cent and bar and catering for 8 per cent. Wages and salaries were up 17 per cent at £379m. They have doubled since 2013. They accounted for 75 per cent of turnover, a little above the Uefa recommended level of 70 per cent. Player purchases cost £86k and sales £422k giving a profit of £336k.

Spurs are close to getting White Hart Lane station renamed as Tottenham Hotspur. Transport for London originally wanted £15m for the name change, but a memorandum of understanding has now been signed which implies a more reasonable price. Any name change would be subject to a public consultation. Spurs see the name change as the key to unlocking a naming rights deal for the stadium. They have denied reports that talks have taken place with Nike. Arsenal were able to get Gillespie Road tube station renamed after them in the 1930s.

Allamhouse, the holding company of Hull City which operates in engineering too, has published its results for the year ended 31 Dec 2018. Income down £60m due to engineering (£22m) & Football (£38m). Profits down from £52.7m to £4.3m due to a lack of lucrative player sales. Allamhouse wage bill down by 37% due to high earners from PL era being sold or relegation clauses operating for 12 months instead of six as happened in 2017. This is the last season in which Hull City will receive parachute payments.

Sir Jim Ratcliffe, the wealthiest person in Britain, has renewed his interest in buying Chelsea after he was rebuffed last summer. Officially, the club is not for sale. Ratcliffe, who is a tax exile living in Monaco, is expected to complete his takeover of the Team Sky cycling outfit later today. Roman Abramovich has been conspicuous by his absence from Chelsea since his dispute with the British authorities over the renewal of his visa, although his Israeli passport would allow him to spend six months in the UK. Exploratory talks are believed to have taken place, but the two sides are far apart in their valuation. Ratcliffe has balked at the £2.5 billion figure Abramovich has in mind given that the club needs a new stadium, a project abandoned by Abramovich, which would cost at least £1 billion. What a football club is worth is ultimately how much a purchaser with the necessary funds is prepared to pay for it, just as with a house. Forbes magazine valued Chelsea at £1.44 billio

The authoritative Swiss Ramble has analysed Southampton's financial results for 2017/18. Pre-tax profit fell from £42m to £35m, as revenue dropped 16% (£30m) to £153m, due to the poor performance on the pitch, though this was largely offset by profit on player sales increasing by £27m to £69m. Profit after tax was down from £34m to £29m. This was the first season under the ownership of Lander Sports (UK), controlled by Chinese businessman Jisheng Gao. The £30m revenue fall was driven by broadcasting’s £26m (18%) decrease from £143m to £117m, mainly due to lower Premier League position and no Europa League money. Match day was down £3.2m (14%) to £19.2m, while commercial was £0.5m (3%) lower at £16.4m. The £35m profit is actually the fourth highest to date in 17/18 Premier League, only behind Liverpool £125m, Arsenal £70m & Chelsea £67m. MD Toby Steel said, 'We continue to be self-sustaining', which is not to be sneezed at considering large losses at Watford £32m, Swan

Takeover talks for Bolton Wanderers have come to an end. The club now has to deal with a winding up hearing in court following an application by HMRC: Takeover breakdown

North Ferriby United has been wound up over unpaid debts and will not be allowed to play any more games in the Northern Premier League: Club liquidated The former FA Trophy winners had been in existence for 85 years.

Even clubs in the lower divisions of the English Football Club are increasingly reliant on benefactors and that applies to Carlisle United and Edinburgh Woollen Mill: Increased debt Blues’ latest accounts, which show they owed Philip Day’s firm £1.31m by the end of last season. Turnover fell, matchday ticket income was reduced and the club made a loss of £121,000. Matchday income was down 17% as attendances down from 5,113 to 4,600. It is, however, among the top six spenders on football costs in League Two. The main cost for clubs is wags and Carlisle now paying out £86 in wages for every £100 of income, which leaves very little to cover other costs of running the club. Carlisle spent £55,000 on player signings in 2017/18, nearly all of this on Richie Bennett.

This post was originally written for Charlton fanzine Voice of the Valley. Who can keep rogue owners of football clubs in check or at least prevent their worst abuses? There is no easy answer to this question. One reason is that when a club is in difficulty, possibly facing administration, anyone who seems to have sufficient funds is going to look like a saviour. A bad owner is arguably better than a club going out of business altogether as ultimately he can be replaced, although in the meantime he may take the club to the brink and inflict long-term damage. Fans may leave and find other things to do on match days. The first body is to consider is the English Football League (EFL). Its primary to task is to run a series of football competitions. It is not set up to be a fans’ representative body, nor is it well suited to be a regulator. However, it is has been obliged to undertake some regulatory functions, often after external pressure, because of the reputational damage th

The authoritative Swiss Ramble has provided an analysis of the recently published accounts of Aston Villa. Losses increased by £21m from £15m to £36m, as revenue dropped £5m (7%) from £74m to £69m and profit on player sales fell £11m from £27m to £16m. On the other hand, the club received £3m compensation for HS2 rail project, which will go through part of the training ground. The £5m revenue fall was mainly due to a £7m lower parachute payment, which meant broadcasting was £7.7m (16%) lower at £40.3m. This was offset by increases in gate receipts, up £1.1m (10%) to £11.8m; commercial, up £0.3m (2%) to £13.4m; and player loans, up £1.1m to £3.0m. Revenue has fallen £48m (41%) from the £117m peak in the 13/14 Premier League to £69m. It is worth noting the importance of parachute payments, down from £41m to £34m, though still half of total revenue in 17/18. These will further fall this season to £17m, then stop in 19/20. Despite the decrease, Villa's £69m revenue is the highest i

The authoritative Swiss Ramble has analysed the 2017/18 accounts of Leicester City. He notes, 'Since King Power acquired the club in August 2010, the owners have put in £186m (£106m share capital and £80m loans), while £121m has come from operations. Most went on player purchases £164m (net) and repaying old loans £115m, while the cash balance is up £26m.' After eight consecutive years of losses (2007-14), Leicester's promotion to the Premier League has produced four years of profits, amounting to £137m. Obviously boosted by an amazing £92m in 2017, but the total also includes a very respectable £26m in 2015 and £16m in 2016. They had the highest profit (£92m) in the Premier League the previous season, but their 2017/18 profit of £2m is among the lowest reported to date, though in fairness it is considerably better than the losses made by three clubs: Watford £32m, Stoke City £30m and Everton £13m. The Foxes generated £29m cash from operations in 2017/18, but then spent

Rochdale lost £19,000 a week in 2016/17 and needed player sale profits of over £2 million to turn this into a profit. Income was up 23% but still low by League 1 standards. Rochdale wages were up nearly a quarter to £3.2m, the lowest in the division, paying out £68 in wages for every £100 of income. In 2017/18 revenue was £5.4m compared with fractionally under £6m in the previous year. The net loss after tax was £306k compared to a profit of £1.364m the previous year, which was due to a reduction in transfer fees received. The strategic report states that 'a medium-term goal is to secure a new training and academy facility within the borough of Rochdale. Such a significant infrastructure initiative will require support and funding from the council and other investors.' This would allow the club 'to build on the considerable success of the academy and youth development systems'. Payments from the EFL at £1.45m accounted for 27 per cent of turnover. Gate receipts a

Ipswich Town have now filed their full accounts with Companies House. Ipswich had losses before player sales (£3.83m profit) of £160,000 a week in 2017/18, compared to the average in the division of £390,000 as owners chase the Premier League TV gold at the end of the rainbow. Turnover decreased by £116k to £17.1m, mainly due to lower gate receipts which were offset by an increase in media revenue. Commercial revenue remained at the same level as in 2016/17 (£4.35m). Average home league gates decreased from 16,980 to 16,272. The operating loss was £8.4m, up from £7.8m. Distributions from the Premier League and EFL, along with televised matches, accounted for 50 per cent of revenue. These revenues would be substantially reduced in League One. In four years out of the last five Ipswich have spent less than £1m on new players in a division where the median spend is £7.1 million by clubs in the Championship. Ipswich spent the lowest of any club in the Championship (who have reporte

Ajax's triumph over Real Madrid pushed the Dutch club's shares up 11 per cent to a record high. The Eurotext listed club added roughly €27m to its market capitalisation. Ajax is the biggest team Netherlands with revenues of €92m in 2018. However, it does not make it into the top 30 of Europe's richest clubs according to Deloitte. In 2017/18 Ajax's profit before tax decreased from €67m to €2m (profit after tax down from €50m to €1m), largely due to profit on player sales halving from €79m to €39m and revenue dropping €26m (22%) from €118m to €92m following the lack of income from European competition (figures from the authoritative Swiss Ramble). All three Ajax revenue streams decreased: broadcasting fell €18m (58%) from €30m to €12m; match day was down €6m (17%) from €38m to €32m; while commercial was €2m (4%) lower at €48m. Although revenue of around €100m is not too bad, it pales into insignificance compared to elite overseas clubs with Manchester United, Real M

The authoritative Swiss Ramble has taken an in depth look at the 2017/18 accounts of Wolverhampton Wanderers. the club'sloss shot up from £23m to a breathtaking £57m, largely due to increased expenditure on players and wages plus an estimated £20m on bonuses and additional transfer fee payments following promotion. The £57m loss is the highest ever reported in the Championship, unless one excludes the £60m boost to QPR 2013/14 accounts for the write-off of a shareholder loan (challenged by the EFL for FFP purposes), which would mean their loss would have been higher at £70m. Under former owner Steve Morgan Wolves were very prudent, making profits six times in seven years. Fosun have a very different strategy, namely 'strong investment into the squad', leading to £70m combined losses in the last two years – but the gamble paid-off with promotion. TV income was unchanged at £8.0m, including PL solidarity payment £4.5m and £2.3m EFL central distribution. The huge amounts re

Tottenham Hotspur are close to announcing the required two test events at their new stadium. One is likely to be an under 18 game and the other a legends match: Stadium progress The first match is likely to be either against Brighton or Huddersfield Town.

Kieran Maguire of the PriceofFootball describes it as a 'jaw dropping week of financial information publication from the Championship' with clubs reporting heavy losses as they chase the Premiership dream. Once again we see how clubs receiving parachute payments from the Premier League are at a clear financial advantage compared to those who do not. Clubs in the Championship lost on average £365,000 a week last season from day to day operations as they chased the gold at the end of the EPL TV rainbow. Reading are the latest club to report their 2017/18 results with losses of ‘just’ £746,000 in 2017/18. An unusual grant receipt of £10m and flogging off some assets then helped reduce these losses to just £21m compared with a profit of £4.7m the previous year. Turnover decreased by £18.8m from £36.7m to £17.9m. Average attendances declined from 17,505 to 15,181. Media revenue was the biggest factor in this decrease, accounting for 71 per cent, down from £20.9m in 2017 to £7.5m

The proposed change of name for North Ferriby United has been rejected by the Football Association following a vigorous campaign of opposition by fans: Set to be sold A winding up petition is to be heard at Hull County Court on March 15th and the most likely outcome is that will enable a new owner to set up without the financial concerns or baggage of the current limited company.

Now that the accounts of Aston Villa's holding company (Recon Ltd) have been published it is possible to get a more accurate idea of the club's finances. Aston Villa trading losses exceeded £1 million a week in 2017/18 or a total of £71m. Broadcasting, including Premier League distributions, accounted for 59 per cent of the £68.6m turnover. Parachute payments were down by £8m. Sponsorship was up because of the training ground deal and represented 7 per cent of turnover. Gate receipts accounted for 17 per cent. Wages were up £12 million to £73m as Villa count cost of John Terry and other loan deals but other employees count the cost as staff numbers fall by 270. Villa paid £106 in wages for every £100 of income in 2017/18. Income likely to fall by £25m in 2018/19 as in the final parachute year. Villa claim youth development spending, which is excluded from FFP calculations, rose by £5m in 2017/18. Club received £3m land compensation, perhaps HS2 related? Villa spent ju

The authoritative Swiss Ramble has been taking an in depth look at the recently published reports of Preston North End. He notes that Preston is 'the very definition of a club punching above its weight, though it does still require owner support.' The £3m profit is the third best reported so far in the Championship. The club's £13m revenue is 3rd lowest in the Championship, only above Burton Albion and Brentford. To show how much the club has outperformed, this is around 20% of the revenue clubs with parachute payments which distort the financial picture in the Championship. Revenue has grown by £6.0m (82%) from £7.3m to £13.3m in the 3 years since promotion from League One in 2015. Almost all of this is due to higher TV money in the Championship (£5.7m) with a small £0.3m increase in commercial. Match day has actually dropped by £0.1m. Preston's £36m debt is not that large for the Championship, and is considerably lower than some clubs, e.g. Boro £101m, Ipswich £8

OWNFAC (Own a Football Club) is poised to take over Hednesford Town. For £49 members decide on all boardroom matters, from signings, selecting the squad and hirings and firings. It is a model that has been tried before with MyFootballClub's takeover of Ebbsfleet United in 2008. At its peak MyFC attracted more than 30,000 members from 100 countries. Then interest waned, the £35 subscriptions evaporated and by 2013 membership had dropped to about a thousand. Ebbsfleet was subsequently taken over from Kuwait. OWNFAC claim that was is different now is that the technology has greatly improved. However, so far they have raised about £170,000, less than Hednesford's annual losses in some years. They think that the 3,500 owners could be expanded to 20-25,000 and that 10,000 of them could come to five games a year. That sounds optimistic to me.

Unpaid bills at Bolton Wanderers mean that it is uncertain whether police will be able to provide cover for Saturday's match against Millwall. The EFL may intervene to ensure the match takes place. The training ground was closed yesterday as there was no food or electricity. Power is provided by a diesel generator and no fuel supplies have been delivered. A winding up order from HMRC over unpaid taxes is looming. Bolton had to rely on a loan from the PFA to pay the players' wages in December. Unpopular owner Ken Anderson has been in talks with a consortium about selling the club, but the deal appears to have fallen through.

Wolves had trading losses of £1,211,000 a week in 2017/18 when being promoted from EFL Championship to Premier League. Their losses were higher than any other club in the division reported to date, which total £446 million. One Wolves fan tweeted, 'Worth every penny.' Turnover for the year was up from £23.7m to £26.4m, driven by improvements in match attendances. Season ticket numbers went up from 13,757 to 21,233 and average league attendances increased from 21,572 to 28,298. At £7.8m gate receipts accounted for 28 per cent of turnover. 26 per cent came from league distributions and 24 per cent from commercial revenue. Sponsorship and advertising accounted for 10 per cent and broadcasting rights 4 per cent. Merchandising revenues were up by £0.6m and there was a £0.4m increase in corporate hospitality revenues. Such revenue increases more than offset the shortfall in prize money from the FA Cup run in 2016/17 which was not repeated in 2017/18. Wolves paid out £192 in

Tottenham Hotspur are optimistic that they have played their last home game at Wembley. They hope to stage the required two test events before the end of March: Stadium optimism The first fixture could be the home game against Brighton, although if they progress to the FA Cup semi-finals the honour could fall to Huddersfield Town. These are not high profile fixtures, but Uefa have reservations about opening with a Champions League game.

Manchester United have what is probably the most successful commercial operation in world football. But could it withstand a sustained period of less successful performances on the pitch? This is the question that is tackled in the Financial Times today in an article by Murad Ahmed. United offer a textbook example of how to build and sustain a brand. Nigel Currie, a sports consultant, told the Pink 'Un: 'I think they are one of a handful of teams in world football that have such a strong brand and glorious appeal they will be able to withstand dips in form from time to time. But, obviously, not forever. If poor performance became endemic this could undermine the club's attractiveness to a future generation of supporters and decrease the value of future commercial deals.' United believes it is less reliant on European success than its continental rivals. However, the club's deal with Adidas contains a penalty clause which means that failure to reach the Champ

The Swiss Ramble has provided another authoritative examination of a club's accounts, this time Nottingham Forest for 2017/18. The club reported a £6m loss before tax compared to £32m the prior season, though the £38m drop is a bit misleading, as it was largely due to loan write-offs decreasing from £40m to £5m. Revenue rose £1.9m (9%) to £22.7m, but profit on player sales fell £4.7m to £10.1m. The £1.9m revenue increase was due to more broadcasting revenue from the EFL, up £0.8m (10%) to £9.0m, and higher ticketing income, up £0.9m (14%) to £7.4m, as attendances grew by 21%. Commercial income was flat overall at £5.2m, while player loans rose £0.2m to £1.1m. The £6m loss is actually not too bad for the Championship, as most clubs in this division lose money. In fact, three clubs reported losses just under £40m: Cardiff City £39m, QPR £38m and Birmingham City £37m. However, it is worth noting that the figures were boosted by £10m of profit on player sales, very largely Britt As

A number of EFL clubs are unhappy at the amount paid to Premier League clubs to compete in the Carabao Cup. Top flight clubs will receive more than £10m to participate in the competition this season. The Carabao Cup is valued at approximately one-third of the £118m a year television contract with the EFL effectively passing on a third of that to Premier League clubs. Of the £10m that Premier League clubs will receive this season, £7.4m comes from broadcast income, £2m from sponsorship and £600,000 from a share of gate receipts. Several clubs have argued that Premier League clubs do not need the additional income whereas it could make a real difference to League One and League Two clubs. Others are more sanguine given that they receive solidarity payments from the Premier League.

Kieran Maguire of the PriceoFFootball comments on Preston North End's accounts for 2017/18: 'Preston show how a club that most assume is run modestly still finds it tough financially in the Championship as they lost £140,000 a week from trading and needed player sales to offset this 2017/18.' The chasm between Premier League and Championship broadcasting deals was highlighted by Preston earning £7m from TV compared to £100-120m in the Premier League. Turnover declined marginally to £13.35m. Profit before taxation was £2.64m after a loss of £434k the previous year. 53 per cent of income (£7.1m) came from Premier League and EFL distributions and televised games. Match day and season ticket sales accounted for 26 per cent at £3.4m, down marginally from the preceding year. Commercial revenue was down slightly at £1.1m. Preston's wage bill was up 10% to £15 million, which is low by Championship standards. Still paying out £113 in wages for every £100 of income though.

Coventry City made operating losses of £30,000 a week in 2017/18 and had an interest cost of a further £35,000 on top of this on their loan. Coventry City accumulated losses over the years now nearly £56 million. There was a slight decrease in year to year turnover of £0.2m. The strategic report complains that the club is put at a competitive disadvantage because of limited access to non-ticketing match day revenues and no non-match day turnover. Whose fault might that be? Match receipts were static at £2.4m and broadcasting and commercial income was down slightly at £3.5m. Total staff costs at £4.9m were 82 per cent of turnover. The club paid rent of £545k in 2017/18, presumably on the Ricoh. There were no payments for directors services compared with £175k the previous year. The Sky Blues bought players for £109k in 2017/18 and had sales of £980,000. Coventry have sell on clauses that could generate a further £650k in respect of players sold. Coventry had loans and interest

Burton Albion had a very modest trading loss by Championship standards of less than £6,000 a week in 2017/18 offset by the sale of Jackson Irvine to Hull. There was no borrowing from Burton Albion in 2017/18 and the only investment was £1,100 from a share issue as the club continued to live within its means. Gate receipts were just £1.8 million for Burton Albion in 2017/18. Commercial income of £11m includes about £7m of TV money which will fall substantially in 18/19 as the standard payout in League One is £1.1 million. The Burton Albion wage bill was up 30% in 2017/18 but they were only paying £77 in wages for every £100 of income which is low by Championship standards. The Brewers spent just over £1 million on player signings in 2017/18 and had sales of £1 million too. Burton Albion have no outstanding loans and operate on a small overdraft which was £77,000 at 31 May 2018.

Aston Villa Football Club Limited have published losses of £32 million for 2017/18. Kieran Maguire of the Price of Football comments, 'Take these figures with extreme caution as exclude player wages and player transfer amortisation, which are in the accounts of parent Recon Group UK whose accounts are overdue.' Aston Villa Football Club had accumulated losses for all the years of trading of the club of £265 million at 31 May 2018. Turnover for the year was £64.6m, a 9.1 per cent decrease on the previous year. Broadcasting, which includes Premier League and EFL, distributions accounted for 63 per cent of turnover at £40.3m (down nearly £8m). Gate receipts were up by nearly £1.1m and represented 18 per cent of turnover. Commercial was down by nearly £2m and accounted for 12 per cent of turnover. Sponsorship was up by £2m and was 7 per cent of turnover. Training ground sponsorship from Hong Kong parent last year was worth £1.9 million to Aston Villa. Wages for Aston Villa

Swindon Town lost £34,000 a week in 2017/18 as relegation to League Two and a lack of profitable player sales meant wages and overheads far exceeded income. Swindon Town debts were almost £6 million by end of 2017/18 in a division where income averages £4 million. The Robins are dependant upon generosity of Lee Power who has lent the club over £3.2 million, a not unusual pattern for lower division clubs. Swindon Town spent £162,500 on player signings in 2017/18 in a division where over half the clubs spent nothing.

Nottingham Forest lost £390,000 a week in 2017/18 and needed player sales and loan write offs to reduce losses. Nottingham Forest total losses are now £146 million and would be touching £200m except for loan write offs from various owners. Kieran Maguire of the PriceofFootball comments: 'If you want to lose a lot of money buy a Championship football club as Forest have averaged losses of £400,000 a week in recent years.' Forest paid £122 in wages for every £100 of income, which is lowest wage/income ratio for six years. Many Championship clubs have ratios of over 100 per cent. Kieran Maguire comments, 'In no other business than Championship football would business owners pay out more in wages every year than they generate in income.' Forest signed players for £6.6m in 2017/18 and had sales of £13.2 million.

The authoritative Swiss Ramble has examined the recently published reports of Sheffield United and comments, 'There is much to admire about their self-sustaining business model. Despite their financial limitations, they are punching well above their weight, as they have established themselves “as genuine contenders in the race to achieve promotion to the Premier League.”' One potential fly in the ointment is a High Court battle between the club's joint owners: the McCabe family, who have put in around £100m since the 90s, and Prince Abdullah, who joined the club six years ago by taking a 50% share of Blades Leisure Ltd. The Blades have consistently lost money since relegation from the Premier League in 2007. They twice reported profits because of special factors: 2009 £10m due to the £18m Carlos Tevez legal settlement; 2014 £31m due to £35m waiver of inter-company loan. There have been £20m total losses in the last four years. The £2m loss this time (down from £5.7m) is