The Political Economy of Football V2

The 2017/18 accounts for Bristol Rovers have finally been published well behind schedule and with some proof reading errors. They show the club lost over £65,000 a week last season from day to day operations. The main reason for losses for Bristol Rovers is that wages were £97 for every £100 of income, that doesn’t leave much to pay the other bills. That kind of wages to turnover ratio is more typical of the Championship. The main reason for the fall in Bristol Rovers income is a 12 per cent fall in matchday receipts while wages went up by 12 per cent. Bristol Rovers total losses over the years amount to just under £20 million. The club is technically insolvent and reliant on its owners to keep it going. Its existence depends on continued support from parent company Dwane Sports based in the tax haven that is Jersey.

Even though the amount of money at stake is only £3.5m, a victory for Tottenham Hotspur tomorrow in the Champions League final could be really transformative. Spurs have taken big steps forward, but their iconic new stadium has been financed by borrowing £650m that needs to be repaid. The stadium still needs a naming rights partner which would be an important source of additional income, but they are not so easy to find these days. The fact that the club has managed to qualify for the Champions League for a fourth successive season despite having the Premier League's sixth highest wage bill is impressive, but for how long can this over performance be sustained if the club sticks to the £200,000 a week including bonuses wage paid to Harry Kane as its upper limit? Much of their over achievement is down to their manager Mauricio Pochettino who has made no secret of the fact that his future will be up for discussion again this summer. Spurs have already made just under £60m from t...

Coventry City have escaped expulsion from the EFL next season as they have set up a ground share for next season. However, they have not stated where it is, although it is thought to be at Birmingham City's ground at St. Andrews: Groundshare beckons The Sky Blues should be playing in Coventry at the Ricoh. When they last had a ground share at Northampton, many fans boycotted home games. Quite what Sisu expects to achieve by constant legal challenges which so far have not succeeded is unclear to me.

The Swiss Ramble has reviewed the final financial outcome of the Europa League. Chelsea earned an additional €4m for winning the competition, bringing their total to €44m (£39m), while Arsenal remain at €36m (£32m). Chelsea's 2018/19 Europa League revenue of €44m (£39m) is €21m (£19m) lower than the €65m (£58m) they earned in the 2017/18 Champions League. It includes: participation €2.9m, prize money €18.3m, UEFA coefficient €3.4m and TV pool €19.1m. Despite reaching the final, Arsenal's 2018/19 revenue of €36m (£32m) is €2m (£1m) lower than the €38m (£33m) they earned for getting to the semi-final in 2017/18. It includes: participation €2.9m, prize money €14.3m, UEFA coefficient €3.4m and TV pool €15.6m. Both clubs have been hit by the UEFA coefficient, a new distribution method for 2018/19, based on performances in UEFA tournaments over past 10 years. Although rated highest of the Europa League clubs (Chelsea 6th, Arsenal 9th), only €84m is distributed among the 48 clubs ...

The defeat by Chelsea in Baku last night was only a blow to Arsenal's pride, it also undermined 'silent' Stan Kroenke's business model. It means another season without Champions League football and, although the club is sitting on a pile of cash, it is open to question whether it will be spent to fortify a porous defence: Financial worries The days of 1-0 to the Arsenal have long since gone, as have the sight of Arsene Wenger parading his Uefa coefficient around Islington. Qualifying for the Champions League was not enough, but when you don't qualify, it seems more desirable. Many Arsenal fans thought that Wenger was the problem and once he was replaced, a rebuilding job could get under way. No doubt methods that Wenger used that had once been at the cutting edge of innovation had become commonplace or outdated, but the problems are evidently more fundamental than that. They clearly start with the way in which silent Stan views his London franchise. Arsenal...

The annual appearance of the Deloitte Review of Football Finance is a major event for football finance geeks and further coverage will be provided in the days to come. Meanwhile, you can always read it for yourself: Annual review The report notes, 'This 28th edition charts the latest movements on the ever fluid football finance landscape. Whilst the Premier League retains its leadership in financial terms, the Premier League clubs face challenges to continue to deliver revenue growth and profitability. Meanwhile, Championship clubs are increasingly gambling to reach the top, and strenuous and creative efforts are being made by other European football leagues to enhance their own global appeal and close the gap to the Premier League.' 'The continued revenue growth of the Premier League and Football League has contributed to another year of growth in the overall size of the European football market. The 2017/18 season total got a boost from the 2018 FIFA World Cup being h...

None of Scotland’s league football clubs are showing serious signals of financial distress, and average attendances are also on the rise, according to football finance experts who report annually on key indicators of business distress in the game. The annual Football Distress Report by corporate insolvency specialist Begbies Traynor has found that for the first time since the report began in April 2012, none of the 42 clubs that make up the first four divisions of Scottish football are currently showing signs of serious distress, down from a peak of four clubs in 2012 and 2013. The Scottish Premiership saw a 1% rise in average attendances to just over 16,000 on average, the highest figures recorded since the survey began. A 7% rise in average Scottish Championship gates to 3,090 was countered by falls in average gates in League 1 and League 2. Overall, attendances have risen by close to 17% since the 2011/2012 season. “We’re a long way from the days of Rangers’ 2012 failure when a cl...

The seventh annual Football Distress Report by insolvency specialist Begbies Traynor reveals that financial distress in football clubs has seen a six‐fold increase from just one to six clubs (8% of total clubs) across the Championship and two Football League divisions now showing signs of serious financial trouble. With the season’s high stakes play‐off games just completed, the six clubs across the three divisions are already showing signs of financial hardship, which could be exacerbated depending on their relative fortunes on the pitch. The increase to just over 8% of clubs in financial distress follows a period of improvement for the past five consecutive years, during which time the drop in distress fell from its peak of 11% to a record low of 1% of all league clubs in 2018. “A sharp rise in the number of struggling clubs is a great concern for the sport in England, and counters the opposite trend in Scotland where prudent management has seen the distress levels fall to nil thi...

KPMG's fourth annual football valuation report ranks the 32 most prominent clubs in Europe according to their value: The European elite 'After three years of stability on the podium, this year brought some turbulence, with Real Madrid CF leapfrogging Manchester United FC at the top, and FC Barcelona slipping to the 4th spot, letting FC Bayern München take the 3rd position. Further changes among the top 10 include Tottenham Hotspur FC surpassing Juventus FC to reach the 9th position, and Arsenal FC dropping two spots to land in the 8th position, surpassed by Chelsea FC and Liverpool FC.' Scottish treble winner Celtic are included in the list of 32 major clubs, the first team from the country to be so. Andrea Sartori, KPMG's global head of sports and the report's author, said the overall value of the football industry had grown by 9% over the past year. 'The overall enterprise value of the top 32 clubs is driven primarily by an aggregate 5% increase in total ...

Kieran Maguire of the PriceofFootball notes that four clubs in the Premier League, EFL and Scottish Premiership have published wage data. 17 clubs spent more on wages than they generated in income, all of whom were in the Championship and League One. Only 27 were below UEFA's 'red line' of £70 wages for £100 income and only Spurs spent less than one half of income as wages. BTW, it is interesting that the Uefa 'red line' is now used instead of the Deloitte recommendation of a fifty per cent level. Maguire, who was wearing a strangely coloured pullover on BBC Midlands yesterday evening, also reveals that Bristol Rovers are threatened with being struck off by Companies House after failing to submit accounts on time. Will other clubs such as Sheffield Wednesday, who have also broken the law, follow suit, he asks?

Some concerns are being expressed about the proposed takeover at Newcastle. 'The Ugly game' has tweeted, 'Sheikh Khaled bin Zayed al-Nahyan does not and will never love Newcastle, and he will use it only as a means to get what he wants from it. However overdue success is for Newcastle - and it's decades overdue - having it bought for the club instead of earned would tarnish the club and further accelerate the dangerous inflationary cycle in English football.' Rafa Benitez is said to be wary of the new owner. Twice before attempted takeovers have ended in disappointment for Newcastle supporters. Little is known about Sheikh Khaled's wealth, but his family is estimated to be worth about £150bn which would put them way ahead at the top of the Sunday Times rich list. He holds a PhD from the highly regarded War Studies department at King's College London. However, proof of funds is yet to be provided.

Forest Green Rovers represents a town (Nailsworth) with a population of 5,000, the smallest place to host an English professional league team. Yet its green agenda helped it to make £5m in revenues in 2017/18, well above the League Two average of £3.8m. The team plays on an organic pitch in a stadium powered by renewable energy. Its owner Dale Vince is the founder of green energy company Ecotricity. Fans eat from an all vegan menu. Scottish seaweed is used on the pitch rather than fertilisers and it is cut with a solar powered electric lawnmower. It is the first football club certified by the United Nations as carbon neutral. The club makes nearly half of its yearly revenues from sponsorship from companies like vegan food makers Quorn and Grundon, a waste management and recycling group. The club's latest sponsor is Candriam, a Luxembourg-based investment company with well over $100 bn in assets under its management, focused on sustainable investment. The club is hoping to ...

Rick Everitt, the editor of Charlton fanzine Voice of the Valley, can be a bit of a glass half empty guy. That is understandable enough where Charlton are concerned. But the Ramsgate fan seems to be in a hopeful mind following Charlton's win at Wembley. He regards it as the defeat of despair and the start of a new chapter in the Charlton story: Addicks beat more than Sunderland He points out that it was safe enough for the Duke of Cambridge to come to yesterday's Championship play off final whilst it was too insecure for Charlton owner Roland Duchatelet to come on Sunday. However, Prince William is at least a dedicated fan of his club who displays some emotion whereas the controversial Belgian regards it as a business venture worth at best two per cent of his time. Prince William trains with Charlton This story notes that a variety of celebrities are Villa supporters and explains why Prince William is, given that he doesn't come from Birmingham: Royal supporter ...

According to The Times this morning Leeds owner Andrea Radrizzani will not consider selling a stake in the club for at least a year despite the reported interest of Qatari Sports Investment (QSI). The original story was in the Financial Times and I wonder if someone close to QSI has been talking to the Pink 'Un, while The Times story came from sources close to the club. It could all be part of a negotiating game. The line The Times is taking is that there would be no point in anyone taking a stake at this point in time as it could not be put into the club because of financial fair play rules. I would have thought that an equity stake could get round this, but in any case the objective might be to tidy up Radrizzani's personal finances. What seems a stronger argument is that Leeds would be worth more if promoted to the Premier League next season. Of course, we have been waiting for that for some time. I have been guilty of saying at the start of every season for some ...

According to a report in the Financial Times the state-backed Qatar Sports Investments, which controls Paris Saint-Germain, has been in talks to buy a stake in Leeds United. Qatar has wanted to enter English football for two years and Leeds is their club of choice. However, at least six different potential investors have held talks with Leeds whose owner, Andrea Radrizzani, prefers to sell a minority stake in the club. Talks have been restarted after the club lost in the end of season play offs. Qatar is the controversial location for the 2022 World Cup. The world's richest nation in per capita terms, it has increasingly been using sport to project its soft power. Radrizzani has spent £100m on Leeds since he acquired the club two years ago and by selling a stake would be able to reduce the risk of his holdings. Last year he sold a 10 per cent stake in the club to the investment arm of the San Francisco 49ers NFL team. The reaction of Leeds fans to the news is discussed her...

It has been reported that Mike Ashley has agreed to sell Newcastle for £350 million to the cousin of Manchester City’s Arab owner Sheikh Mansour. The Currant Bun is reporting that contracts have been signed and submitted to the Premier League between Ashley and Dubai-based billionaire Sheikh Khaled bin Zayed Al Nehayan. He is a senior member of the Abu Dhabi royal family and was involved in a failed bid for Liverpool last year. The failed Liverpool bid is discussed here: The Liverpool takeover Newcastle are refusing to comment which suggests that there is something in the story. It is being reported that Rafa Benitez would be retained as manager. Toon fans will be glad to see the back of Ashley and no doubt will be hoping that the Sheikh has pockets as deep as those of his cousin. If anyone dislikes the thought of an owner from the Gulf, perhaps they should wake up to 21st century geopolitical realities.

It's time for that annual chestnut about the Championship play off final being the richest game in the world. It is, of course, the case that the team that loses will suffer financially: Financial strain The financial prize awaiting Aston Villa or Derby County has actually fallen for the first time. Although the overall value of the Premier League TV rights deal has risen to a record £9.2 billion for the first time, the domestic rights bought by Sky Sports, BT Sports and Amazon have fallen from £5.4 billion to £5 billion. The payout for the winner of the Championship final (over time) has fallen from £174m to £170m, still a lot of money. In some ways more is riding financially on the League One play off final. Sunderland will receive £35m in parachute payments in the coming season, but they still face big financial challenges. If Charlton are promoted, the chances of barmy Belgian owner Roland Duchatelet selling the club would surely increase. Stay in League One and the cl...

Middlesbrough are to sue Derby County over alleged breaches of the Football League's profitability and sustainability rules: Court action As this dispute turns ugly two days before the play off final, one fears that the real winners will be the lawyers. The EFL is to review the relevant rules this summer after allegations that clubs are exploiting the system by selling off their grounds and leasing them back as a way of balancing the books. Sheffield Wednesday and two other Championship clubs have reportedly followed the example of the Rams who sold Pride Park to the club's owner Mel Morris last year for £80m. This enabled them to record a pre-tax profit of over £14m for 2017/18. EFL profitability and sustainability rules do not prohibit such sale and lease-back schemes which are an accepted method of dealing with cash flow problems in other sectors of the economy. However, many clubs see it as a use of creative accounting to bypass financial fair play regulations. and h...

The Premier League has published its TV revenue for the 2018/19 season, ranging from £97m for relegated Huddersfield Town to £152m for Liverpool, who earned more than league winners Manchester City £151m, due to more matches broadcast live. Each club receives equal shares for 50% of domestic TV £34.4m, overseas TV £43.2m and commercial income £5.0m. Each league position is worth £1.9m (merit payment), while each match broadcast live is worth £1.1m (on top of £12.2m for a minimum of 10 games). Liverpool's Premier League TV money increased by £6.5m from £145.9m to £152.4m in 2018/19, due to a £3.6m higher merit payment (for finishing 2nd, compared to 4th the previous season) and £2.4m more from overseas TV deals. They benefited from most live TV games: 29 versus City 26. Premier League TV money for City increased by £1.6m from £149.4m to £151.0m in 2018/19, due to £2.4m more from overseas TV deals. No change in league position or number of matches broadcast live (26), but this was...

The fans of Gateshead are the latest to suffer from ownership problems. The one time Football League club has been suspended from the National League. They can appeal, but whether an appeal can succeed remains to be seen. The club has breached the league's rules on financial reporting and permitted loans, as well as defaulting on football creditors. At a disciplinary hearing The Heed were found guilty of failing to obtain security of tenure over its ground. The club has also been fined £3,500 and docked nine points from this season meaning they drop from ninth to 17th. BBC Newcastle reported that a takeover of the Heed by supporters from owner Dr Ranjan Varghese had been agreed this week, but is not yet complete. Some of the background to yet another story of unfit owners can be found here: Chaos and oblivion?

Alcalaci, Spain: Two Englishmen have played a key role in bringing football back to Salamanca after the La Liga club collapsed with big debts in 2013. Fans formed what is called a 'tribute' club, although we would use the term 'phoenix club' in the UK. The club has now reached the third tier of Spanish football: Revival A university town and major tourist destination, the metropolitan population is not far short of quarter of a million.

In a strongly worded statement unpaid Bury players have urged owner Steve Dale to sell up before the club is brought to its knees. A winding up order against the club will be heard in the High Court on June 19th: Walk away Dale took over the club in December, but put it up for sale in April after saying the financial situation was worse than anticipated. Non-playing staff were finally paid March salaries last week and received 50% of April wages on Monday. The Professional Footballers' Association (PFA) stepped in to pay 50% of money owed for March and April to Bury's players, who are members.

This is an unexceptional photograph of a football stadium for an amateur team. But what happened here was very exceptional, While a match was in progress the police came on the pitch and arrested nine players and four staff members: Police raid

Arsenal's managing director reckons that the Premier League is more commercially significant than the Champions League. He was addressing the Financial Times Business of Football summit. Unfortunately, the Pink 'Un is behind a pay wall so I cannot provide a link. They also don't like me using the following quotes, but I think they fall under the 'fair dealing' rule. Vinai Venkatesham said: 'The Premier League is the thing that really draws the commercial partners in. Of course, all our commercial partners want us to be in the Champions League as well, but I think that the Premier League piece is just as, if not more, important than that.' He also defended Arsenal owner 'silent' Stan Kroenke against charges that he is an absentee owner. He said he was in daily contact with Arsenal executives. But is being on the dog, or e-mailing or using WhatsApp the same thing as being on the premises?

Welsh Premier League team Cardiff Met have qualified for the Europa League after a penalty shoot out victory over Bala Town. It was their third attempt to qualify and will bring them a windfall of £193,000. It will also give the university some welcome publicity, raising its profile. All the players are postgraduate or undergraduate students at the university. Of course, one recalls that Oxford and Cambridge colleges sometimes recruit experienced rowers as students who then appear in the boat race. Are universities going to be the modern equivalent of the once common works team, now almost disappeared (although Airbus UK are in the Welsh League). When Bath University had Team Bath it caused some controversy. There were complaints about taxpayers' money being used to subsidise a football team. I wrote to the Non-League Paper pointing out that public money was now usually a relatively small part of any university's income.

Manchester United’s value on the stock market down a further 2% yesterday (although there was a late recovery) and has fallen by over $400 million since late February as markets digest cost of loss of Champions League football and replacing dead wood in the team. The club are busy making their plans for the transfer window, including some potentially expensive purchases. However, one senses that there are some quite fundamental problems which will take some time to resolve and are constrained by the fact that they are a Glazer sports franchise.

Norwich City have taken out a loan from Barclays secured on outstanding TV money due from present season and amounts guaranteed from Premier League for 2019/20. 'Looks as if they’re preparing their transfer pot for the summer nice and early,' observes Kieran Maguire of the PriceofFootball. They will need to spend to stay up, although Fulham splashed the cash last season and still came down. However, I think that the Canaries have better management whereas Fulham went through three managers.

AC Milan are thinking of taking a year out of European competition by cutting a deal with Uefa over financial fair play violations if they fail to qualify for the Champions League: Take a year out A season in the gruelling 'B' level competition of the Europa League is not very appealing on either financial or prestige grounds. Manchester City, of course, do not have this option as they face penalties for alleged breaches of the rules.

How are we to interpret Manchester City's 6-0 drubbing of Watford in the FA Cup final yesterday? As a neutral in the Premier League, I simply enjoy watching Manchester City's skill. But some dislike such one sided games, which can look like a training game, even although Watford have shown throughout the season that they are not pushovers, in fact high achievers in their own right. So for some it is an opportunity to reiterate the familiar 'Football is broken' narrative: Smashing of Watford is proof I don't really buy into that narrative, at least in its full form. But even if I did, it wouldn't lead me to the conclusion that the time has come for a European super league. That seems like selling the pass. Yet, as Jonathan Northcroft suggests in the Sunday Times today, City still lack what he calls 'glory', ungrudging recognition, for their achievements. In an article that is worth reading he suggests a number of interesting explanations . '...

Today's FA Cup final between Manchester City and Watford may seem like a one sided affair, but football can always spring surprises. Manchester City clearly have a superb side, but they may be tired after all the efforts they made to win the Premier League in a thrilling contest with Liverpool. The challenge for a club like Watford just outside the top six is how to sustain their success without being sucked into a relegation battle in future seasons. The Hornets may seem secure enough, but I would not have expected Brighton to be in such a perilous position at the end of the season. In the Premier League we have seen a succession of clubs apparently consolidate their position in the top flight and then fall away. Stoke City, Swansea City and West Bromwich Albion were all relegated and Southampton were in constant danger this season. I am not implying that Watford are complacent: quite the contrary. However, breaking through the glass ceiling below the top six is a big challe...

The FA Cup is to go free to air for the first time since the 1980s with ITV close to joining the BBC as rights holders. In March the BBC won the right to broadcast up to 18 live FA Cup matches a season, in addition to highlights. ITV is set to gain a larger package of 30 games as the senior partner. It will share coverage of the FA Cup final from the 2021-22 season for the first time since 1988. The package which ITV is understood to have bid successfully for is held by BT Sport, which has shared the rights with the BBC since 2014. ITV has not held the rights since then when a six year shared coverage arrangement came to an end. For the FA, it's a question of funding versus coverage in making the choice between subscription and free to air television. Viewing figures on the BBC have been impressive since the early rounds of the competition. 7.5 million watched Manchester United's fourth round win over Arsenal. BT Sports could only get 2.7 and 2.4 million respectively ...

After the Pope encouraged women to be more influential at the Holy See women working there have formed Vatican City's first female football team. Their first game will be against AS Roma's women's team. The men's team has existed for 48 years. Rome's Catholic seminaries already play in a tournament called the Clericus Cup which has led to complaints of noise. The organisers have had to discourage loud chanting in Latin. There has been talk in the past of having a team that could compete in the Italian league system: Playing priests?

A rise of almost a tenth in broadcasting revenues coupled with flat commercial income and marginally higher matchday receipts saw Manchester United’s revenues inch ahead by £4 million to £152.1 million in the first three months of this year. Income up mainly due to £35m extra TV money from enhanced Champions League deal. Excluding a £6.4 million profit on player transfers – mainly Marouane Fellaini to Shandong Luneng Taishan – United’s operating profit fell from £10.6million to £7.9million year-on-year: United finances Manchester United paid dividends to the Glazers of £11.6 million during the last quarter and intend to do the same in June. United's balance sheet is strong. £194 million in cash and amounts owing to other clubs for transfers about £60m. Loans still high but no repayments due for a few years. Manchester United's wage bill was up 13% as full impact of Sanchez and Fred kicks in plus new contracts for existing squad.

Year after year I have said that this is the year in which Leeds United must go up to the Premier League. Instead, after 16 seasons, they face another year in the Championship. It's an almost Shakespearean tragedy. Leeds is a vibrant city, a regional capital, surely deserving of a Premier League team. But, of course, it doesn't work like that. Quite why Leeds had failed to capitalise on the success of the city is a matter for their fans to debate. There is an alternative account of the latest setback. Kieran Maguire of the PriceofFootball has tweeted, 'Have to feel for Leeds tonight, especially with the financial engineering of their opponents which would have triggered a 10/11 point FFP penalty had they not used unusual accounting to sell the ground to the owner and book a £40 million profit.' The Ugly Game tweeted: 'Even if later found to be compliant, selling your stadium for the primary purpose of beating FFP rules is gaming the system and legalised fin...

Uefa has moved closer to banning Manchester City from the Champions League for one season. However, it would probably not be next season as City would certainly appeal to the Court for the Arbitration of Sport in Lausanne. The step taken is a technical one, but it is a further step in the escalation of the dispute. The chief investigator of Uefa's Club Financial Control Body, responsible for policing financial fair play regulations, has decided to refer City to its adjudicatory chamber. The club has been accused of artificially inflating the value of sponsorship deals with undeclared additional funding from its Abu Dhabi-based owner, among a number of measures intended to deceive the investigators. The club has always denied the allegations. Manchester City said that it was ''disappointed, but regrettably not surprised' by the move and that 'the accusation of financial irregularities remains entirely false'. The club said in a statement that the Uefa deci...

Kieran Maguire of the PriceofFootball reveals that Manchester United top the table for the highest paid director in the Premier League, with Ed Woodward earning just over £4 million. Maguire is not sure whether or not he's planning to celebrate the achievement with an open top bus parade around the city though. Woodward is not exactly popular with fans, some of whom regard him as substantially to blame for poor player recruitment decisions in recent years. Ironically, one of the teams at the bottom of the table with zero payments is Manchester City. Tottenham Hotspur are understandably planning an open top bus around Haringey, regardless of whether they win the Champions League. At least it will give North London residents a change from Arsene Wenger parading his Uefa coefficient around Islington, although Arsenal could well have a Europa League trophy to parade.

This is a rather technical legal article about financial fair play, but it is making an important point that I have been seeking to make for some time as a non-lawyer: there is a tension between Uefa financial fair play regulations and competition law: Deficiency of fairness The article, written for Law and Sport, notes: 'UEFA has expended great effort in establishing a defence based on the objectives of FFP to any potential challenges under EU competition law. UEFA’s own reluctance to define precisely how the Regulations are to be applied may be a real weakness in that defence. UEFA have a potential problem which may well be tested over the next twelve months. It is certainly not beyond possibility that an affected undertaking (perhaps La Liga) may seek to exploit this issue.' The article does suggest there may be a relatively simple work around, but there may be some interesting cases to come.

Manchester City have reacted strongly to the leaking of allegations against them which they strongly deny. One gets the sense that there is a view among people close to European football's governing body that Uefa has fallen short in the enforcement of its financial fair play rules and that making an example of a club with owners from outside Europe might offset this. In the past, Paris Saint-Germain and AC Milan have avoided sanctions through successful legal challenges. Manchester City said that the implications of a report published in the New York Times were 'either that Manchester City's faith in the [Uefa investigatory body] is misplaced or … the process is being misrepresented by individuals intent on damaging the club's reputation and its commercial interests. Or both.' 'The accusations of financial irregularities are entirely false, and comprehensive proof of this fact has been provided [to Uefa's investigators].' Here is some useful backgr...

Talks between the owners of Coventry City, Sisu, and Wasps have broken down after a complaint made by Sisu to the European Commission: Breakdown Sisu seem more intent on pursuing legal remedies than securing the future of the club, although it should be noted that Sisu does not regard its complaint to the Commission as a legal action. Last week the word on the street was that a five year lease deal was on the table. Wasps chief executive Nick Eastwood said: 'As everyone knows, we have consistently maintained over a long period of time that we were happy to sit down with Coventry City to reach agreement over their future at the Ricoh Arena, once the club’s owners had agreed to cease all legal action or proceedings surrounding our acquisition and ownership of the Ricoh Arena.' As reported by both parties recently, we entered such discussions in good faith, based on that principle. However, we have now been made aware of this complaint to the EU Commission and understand tha...

Football finance expert Kieran Maguire of the PriceofFootball has expressed concern about the delay in producing accounts for Sheffield Wednesday: Red flag on wait for Owls accounts Speaking on BBC Radio Sheffield, Maguire said: 'By choosing to not (disclose their accounts) I think Sheffield Wednesday lay themselves open to having clandestine reasons for non-disclosure, and that’s not very good when there have been so many stories in respect of Financial Fair Play issues over the past season.'

This is a sad and shocking story. Bolton Wanderers have had to set up an emergency food bank for unpaid staff. It should be remembered that many of the staff on the non-football side of are often on very 'ordinary' wages: Food bank for staff Kieran Maguire of the PriceofFootball has commented: 'A tragedy and further indictment of owner Ken Anderson’s reign of greed and neglect.'

Another club in Greater Manchester has been accused of buying the league: Salford City. Accrington Stanley supremo Andy Holt has even accused them of trying to steal a place in the Football League. Gary Neville has referred to 'a level of ferocity towards us on social media.' My first comment would be that perhaps it's time to wake up and smell the coffee. Money was important in football before the advent of the Premier League in 1992 which is now portrayed as a kind of football AD (or CE to use modern terminology). The sums have become bigger, and there is more global sourcing of funds, but money has always talked. The Ammies have won four promotions in just five seasons. They are the first club to bounce straight through the top tier of the non-league pyramid, having won the National League North last season. The Class of '92 owners (the Neville brothers, Ryan Gigegs, Paul Scholes, Nicky Butt and now David Beckham) have insisted on foundations being put down. ...

Plans to revamp the Champions League have encountered increasing criticism, but Uefa may still press on with them: Battle over Champions League The proposals have been put forward by the European Club Association representing top European clubs. The intention is to make it a more exclusive competition in which top clubs would have a more or less permanent place and intruders like Ajax this year would be kept out. The top 24 clubs in the Champions League would automatically qualify for next year's competition, creating an effective elite cartel. Four places would be given to teams 'promoted' from the Europa League. Just four sides would qualify based on performances in their domestic competitions. It's really an adaptation of an American model of professional sport in which the same franchises stay in place, even if they move city. American owners of European clubs have always found the idea of relegation and promotion odd. For example, if you take baseball, whe...

Record attendances have been reported in the Football League and National League. A note of caution is needed. In the past, attendances may have understated the crowd, particularly at really popular games. Youths knew ways of getting in for free; clubs may have been trying to minimise their 'entertainment tax' liabilities; and it has been alleged that some gatemen were on the fiddle. Today, fans complain that attendance figures are boosted by the number of complementary tickets given out (the referee has always been entitled to some for his mum or friends who like the way he flashes a card). Many fans do not like the fact that season ticket holders are counted whether they are in the ground or not. Fans at Charlton who are opposed to Belgian owner Roland Duchatelet think that attendances have been exaggerated to mask the erosion of supporters. In any event, attendances in the English Football League have reached their highest levels for more than 60 years with more than ...

The New York Times is carrying a report claiming that Manchester City will be banned from the Champions League for a year for alleged financial irregularities. The club has always denied any such irregularities and would appeal any such decision which would mean it could not be implemented next season. The timing of this report at a time when City won the Premier League title in spectacular fashion is highly suspicious. The one trophy the club now most wants is that of the Champions League. There has, of course, been a 'get City' campaign for some time. The club has invested heavily in areas as women's football and Academy football and meeting community challenges in East Manchester. Claims that the club bought the title overlook and cheapen the efforts of dedicated and skilled staff from the manager downwards producing football that is a delight for the neutral to watch. (I am not a City supporter). The BBC has taken up the story, but says that no final decision has...

Bolton Wanderers have gone into administration over an unpaid tax bill, the first league club to do so for six years: Adminsiration This will mean a 12 point deduction for the club. There are no purchasers in sight at the moment, but this may change if the assets are available at a reduced price.

Sunderland reckon that they have sorted out 60 to 70 per cent of the financial problems they have inherited, but they will face a new set of problems if they are promoted to the Championship: Sunderland open up on finances The Championship is notorious for having the most uneven playing field of any of the divisions, as Kieran Maguire of the PriceofFootball has shown. Relegated clubs enjoy large parachute payments and can also sell off Premiership level players at a profit. Financial fair play rules have only nibbled at the edge of the problem. When Belgian buffoon Roland Duchatelet bought Charlton Athletic, he thought the rules would soon create a level playing field. That he reached this conclusion is even more surprising when one considers that he installed a young Belgian competition lawyer as chief executive. Whether or not she realised that financial fair play is always vulnerable to a challenge under competition law, or whether she was cautious about speaking truth to pow...

Arsenal must gain entry to the Champions League by winning the Europa League. It is vital for the club's finances, the perpetuation of its financially self-sustaining model and its prestige: Emery in a corner Of course, many Arsenal fans would argue that the underlying problem is the approach of 'Silent' Stan Kroenke. He wants to run the North London 'franchise' in a way that suits his own objectives.

Mauricio Pochettino has warned has warned the sphinx like owner of Tottenham Hotspur, Daniel Levy, that he may quit unless he gets the resources he needs to take the club forward. The Spurs manager said it was unreasonable to think the club could continue to compete with England's biggest sides and qualify for more Champions League finals while working within the constraints imposed om him since taking charge at White Hart Lane in 2014. Pochettino thought that owner Levy would be unmoved by reaching the Champions League final. He said: 'Do you know Daniel? He never loses his composure. There's no easy with Daniel.' However, the Spurs manager was clear that it would not be staying if the club expect similar levels of success without changing the way they are run. This does not necessarily mean splashing the cash, but it does mean having a plan: We need to plan for the future Spurs are doing the best to derive revenue from their iconic but costly stadium. They hav...

The drama on the final day of the Premier League season tomorrow is naturally focused on the fates of Liverpool and Manchester United, but the most important game in financial terms is between Watford and West Ham United. There is a range of three places available to both teams and this could make a difference of just under £5.8m to their final payout from the Premier League. Leaving aside the relegated clubs, it is the teams at the top and the bottom that will see the smallest difference to their prize money: £1.93m for Manchester City, Liverpool, Chelsea and Brighton. Wolves will finish seventh whatever happens and should therefore, leaving some unlikely outcomes aside, be in the Europa League next season. It's a just reward for a team who have not been daunted following promotion and made a big impact on the league. Paradoxically, the long drawn out Europa League campaign may hold them back next season (Burnley were negatively impacted this season). The real excitement tom...

It's widely recognised that Manchester United is at a critical juncture. The initial optimism generated by the appointment of the sunny Oli Gunnar Solksjaer masked deeper problems at the club. However, the failure to qualify for the Champions League in itself makes it more difficult to tackle these problems, as the financial gap between the prestige competition and the Europa League is growing year by year: Manchester United finances The club may need to make more out of player sales than it has in the past. Of course, one should not overdo the gloom. This is a very profitable club, in large part because of its sponsorship deals. The club is able to spend freely if it wants to, although it also has to spend wisely. There is also the issue of whether it is as attractive a prospect to world class players as it was in the past. Of course, an even more fundamental problem is the way in which the club is run under the Glazers. Their leveraged buy out did not, of course, preve...

Big increases in sponsorship income have led to record revenues at La Liga. Advertisers have been drawn to Spanish success in European competitions. Despite English success this year, in the last 10 years Spanish sides have won 70 per cent of the 30 Uefa competitions that were contested. This has enabled them to build up global followings and attract large endorsement contracts. La Liga's overall revenues reached €4.48bn during the 2017/18 season, up by more than a fifth from 2016/17. The top 42 clubs earned a net profit of €189m, their best financial result ever. The numbers suggest that La Liga's revenues are broadly level with Germany's Bundesliga, currently the second richest competition in world football behind the Premier League. While past growth at the top European leagues has relied on increases in broadcasting income, the main driver of revenues for La Liga last season was commercial revenues, such as sponsorship and advertising. Commercial revenues at La Lig...

Football's biggest competitions are exploring the sponsorship opportunities created by the introduction of video assisted referee technology (VAR). Fifa for the World Cup and La Liga in Spain are among those interested. It has been estimated that VAR was on screen for 27 minutes during last year's World Cup. This is significant airtime given advertising during the finals of a big tournament can cost up to £600,000 a minute. Independent sports marketing analyst Tim Crow told the Financial Times, 'I think it is the biggest sponsorship asset that football has ever created. Most other advertising is on the side but VAR is in the middle of a game, part of a game. For a sponsor that is a dream come true.' Fans are divided about VAR. Many think that it takes away the controversy away from a game and that even when examined in detail decisions such as handball are often not clear cut. Others argue that it prevents mistakes such as denying a penalty which could change t...

Is the Premier League now the strongest league in the world with all four slots in the finals of European competitions occupied by English clubs for the first time ever? That was the question posed on Radio 5 this morning. Of course, really one means in Europe. The MSL continues to develop; you cannot beat the Argentinian league for fierce competitive excitement; and large sums of money have been shovelled into the China Super League. After that? When I was in Chile, I watched a dreary match on television involving the Catholic University team (there is also a team called Everton). There were just two highlights. When the one goal was scored by Catholica the player took off his shirt to reveal a tattoo of Christ on the cross covering his back. Thirty minutes after the match ended there was a riot outside my hotel involving rival fans. But what about Europe? The real competition comes from La Liga, Serie A and the Bundesliga. We are just talking about one year and over the ye...

How does the Swiss Ramble do it? It must be something in the Swiss air that allows him to produce a series of authoritative reports on football finances. After last night, he has updated his figures on the amount that English clubs will earn from the Champions League this season. Due to the significant increase (around 50%) in Champions League revenue in 2018/19, all English clubs will earn much more than prior season (2017/18 comparatives in brackets). As it stands: Liverpool €107m (€81m) Tottenham Hotspur €102m (€61m) Manchester City €93m (€64m) Manchester United €93m (€40m) Champions League revenue for Liverpool is €107m for reaching the final, up from €81m last season. Includes: participation €15m, prize money €56m, UEFA coefficient €23m and TV pool €13m. If they win the final, they will earn an additional €4m, bringing their total to €111m. Spurs Champions League revenue is €102m for reaching the final, up from €61m last season. Includes: participation €15m, prize money €...

Luton will not overstretch themselves financially in the Championship: Prudent approach Of course, they are right, particularly given the club's history. However, in many ways this division has a less level playing field than the Premier League because the money coming in from broadcasting is not large. As a newly promoted club you are up against teams with parachute payments or that often sell Premier League players at a big profit. Team spirit, enthusiasm, dedication and good management can all help to overcome these obstacles, but only to an extent. Ask Rotherham who have played some good football this season but still got relegated.

An all English Champions League final. That will silence knockers of the Premier League, for 24 hours anyway. There are always plenty of believers in the tall poppy syndrome ready to say that La Liga, Serie A or the Bundesliga are better. First, congratulations to Liverpool and Tottenham Hotspur for incredible comebacks. Anfield will always be one of my favourite football stadiums and I enjoyed going there when Charlton were in the Premier League. The owners of the club have invested money in the stadium, the manager and players, but in a prudent rather than reckless fashion. Tottenham Hotspur have come through a potentially difficult season with flying colours. No money was spent on the team in the summer and they have had a difficult stadium transition, albeit one that has ended with an iconic stadium. I was privileged at the beginning of the season to attend a reception opened by the Mayor of Haringey and meet some of the Spurs fans doing important work in the local communi...

Kieran Maguire of the PriceofFootball has tweeted, 'Losses in the Championship have almost doubled in five years and clubs are losing over £10 million a week between them chasing the EPL gold at end of the rainbow. Sheffield Wednesday and Bolton Wanderers have both broken company law by failing to submit their accounts but will increase the total of losses when they publish.' 'Total losses over the five years are £1,865,000,000 but financial fair play is working according to the EFL. Premier League not the land of milk and honey that it is portrayed to be though with more loss making clubs than profitable and again dependent on player sales.' But he admits, 'If it was a pure business I wouldn’t be living in Manchester but with a season ticket for Brighton.'

The authoritative Swiss Ramble has turned his attention to Brentford, a club looking forward to a new era as work continues on the new stadium at Lionel Road (capacity 17,250) that will allow them to leave the atmospheric but cramped confines of Griffin Park. The club's loss in 2017/18 widened from £1.0m to £3.9m, due to 'increased football related costs'. Revenue was stable at £12.7m, due to 'similar on-pitch performance and attendance year-on-year', while profit on player sales rose £1.3m to £14.1m. The £4m loss was actually one of the better results in the Championship, with only five reporting profits. In fact, 10 clubs lost more than £20m. Brentford's financial challenge is highlighted by the fact that their £12.7m revenue was lowest in the Championship, below Burton Albion £12.9m, Preston £13.3m and Barnsley £14m (two of whom were relegated). Only around a fifth of Villa £69m, Sunderland £64m, and Boro £62m. Revenue has nearly tripled since promotion f...

The Football Supporters Federation is concerned that West Ham is seeking to monetise fan engagement through its relationship with a digital platform that uses blockchain: Fan engagement Views about crypto currencies vary. Some see them as a liberating force that can evade the constraints imposed by governments and central banks. Others see them as mechanisms for evading taxes, money laundering and criminal activity. It is certainly a largely unregulated space, although West Ham would no doubt claim that a proper commercial agreement offering consumer choice is in place.

With Derby County getting into the Championship play offs and Middlesbrough denied, Tony Pulis thinks that the Rams have got round financial fair play rules. Derby County deny this and the EFL appear to concur: Puli questions rival's finances I have a great deal of respect for Middlesbrough, not least because former Charlton keeper Darren Randolph is their player of the year. Steve Gibson has been a model owner, continually pouring money in and largely getting disappointment in return. But I have to say that this has the whiff of sour grapes about it. Moreover, many Boro fans see the real problem as being Pulis's playing style. Another perspective is to look at the contrast between the finances of Boro and relegated Rotherham United: Gulf in finances However, another person I respect greatly, Kieran Maguire of the PriceofFootball thinks that there has been at least some creative accounting. The article linked to above notes, '[There was] a convenient move that saw...

After ten years as the owner of Huddersfield, which saw them promoted to the Premier League, Dean Hoyle is to step down as owner. He has suffered ill health recently, but admits that it will be an emotional moment for him when he attends his last match as owner: Huddersfield sold Lifelong Terriers fan Phil Hodgkinson will take over. Hodgkinson, the CEO and founder of the PURE Business Group, will step down from his role as an owner and director at National League North side Southport. In my view Hoyle has been a good owner, even if it did all end with poor results and relegation. Even with parachute payments, the Terriers will face a tough challenge in the Championship next season, but I wish them well.

Manchester City have overtaken Manchester United as the most valuable club in the Football League according to a new study by the University of Liverpool's Sports Business Group: Finance study Burnley, ranked seventh, are rated as the most financially sensibly run club in the top flight: Seventh and sensible The report shows the gap between very rich and not quite so rich in the Premier League widening as the Big Six are worth 74% of the total.

The authoritative Swiss Ramble has applied his forensic eye to the accounts of Swansea City. They are now in the third season under the control of the American consortium led by Stephen Kaplan and Jason Levien, who own 68% of the shares. To date, these owners have been unwilling (or unable) to put any money in, saying player sales should cover any shortfall. In 2017/18 they made a loss before tax of £3.2m, compared to a prior year profit of £13.4m, representing a £16.6m deterioration, as revenue fell £1m from £128m to £127m, though profit on player sales was up £9m to £46m. After tax, the club went from a £13.0m profit to a £2.9m loss. Although Swans £3m loss is clearly not great, it is by no means the largest in the Premier League, as six clubs have higher deficits, including Palace £36m, Watford £32m and Stoke £30m. Against that, some were very profitable, e.g. Spurs £139m, Liverpool £125m, Arsenal £70m and Chelsea £67m. The loss would have been much higher without £46m profit on...

Crystal Palace chairman Steve Parish has assured fans that he 'won't rest' until the new stand at Selhurst Park is built. It will increase capacity from 26,000 to more than 34,000. That will cost up to £100m, but is surely worthwhile as the extra income will help Palace to consolidate in the top flight, as well as boosting the prestige of the club. However, negotiations are still going on with Croydon Council over the funding of transport and community improvement initiatives. Public transport links, and clearing crowds after games, are a challenge for most London clubs, e.g., at Tottenham Hotspur's new stadium.

Defeat by a late goal at Fleetwood last night denied Sunderland the possibility of automatic promotion and now they have to enter the lottery of the play offs. Sunderland's back-to-back relegations came at a cost of £19.91m in pre-tax losses for the 2017-18 campaign, up from a figure of £10.3m. Turnover dropped from to £63.7m from £123.5m last season. Their drop into the second tier reduced Sunderland's media income by 49% from £95.6m to £48.9m, while sponsorship also tumbled from under £10m to £1.9m. This decrease was offset a drop in salaries from £73.5m to £41.5m. Nick Barnes, Sunderland commentator for BBC Newcastle said: 'Turnover inevitably dropped on relegation to the Championship. Total wages came down - ostensibly that's progress, but as we know they carried a number of players on high wages, despite taking pay-cuts, with relegation the wages to turnover went up to 73.5% from 66.8%. The figures are stark here - they will be starker next year with the consid...