The Political Economy of Football V2

The financial crisis at relegated Notts County has intensified after staff and players were not paid their wages for June. The sum involved is understood to be about £200,000: Staff unpaid The Magpies have been available for sale since January, but no new owner has been secured, although talks with a consortium involving a convicted fraudster are continuing. Kieran Maguire of the PriceofFootball notes, 'Notts County join a long list of clubs, Bolton, Bury, Oldham, Blackpool, Macclesfield, Reading, Morecambe etc. who have failed to pay their wages on time in the last 12 months.' Events like these reinforce the case for some form of independent regulation of football, although the record of utility regulators has been mixed to say the least and such a regulator would face myriad challenges: MP calls for regulation

Takeovers, even partial ones, are relatively rare in the Bundesliga. Hence, it is a significant development when a controversial businessman buys a minority stake in Hertha Berlin. Lars Windhorst has splashed out €125m on a 37.5 per cent stake in the heavily indebted (€119.6m) and loss-making club. He has an option to acquire a further 12.4 per cent in the future at a higher valuation through his investment vehicle Tennor Holding which would give him effective control. Mr Windhorst has a history of legal troubles. He is at the centre of a controversy over illiquid and high-risk corporate bonds held by H2O Asset Management’s funds, a subsidiary of French bank Natixis. The funds suffered outflows of more than €5bn since the Financial Times reported on the exposure last week. However, his spokesman has specifically denied that it is a trophy purchase saying it would be too expensive for that. He thinks there is real potential in a club located in Germany's capital city. In pa...

Changing rooms at the Garrison Field Vodafone is to sponsor the world's smallest football league, the Isles of Scilly League, which has just two teams, Garrison Gunners and Woolpack Wanderers: Sponsorship deal The keeper's role can be a lonely one. The two teams play about twenty games a year at the Garrison Field stadium and also play in a number of cups including the charity shield which launches the season. Teams are chosen by the captains making alternate choices. The Isles of Scilly League will not only become the world’s first 5G-connected league, it will also see the launch of the first ever crowd sourced fan-assisted referee (FAR) system later this year. In addition to live streaming key league games over 5G for the forthcoming season starting in October 2019, Vodafone will also connect supporters elsewhere on the island so they can instantly have a say on key decisions during a game via their mobile phones. The writer is mainland football correspondent for Rad...

Kieran Maguire of the Price of Football writes, 'Some people have asked me why it’s only in last couple of years EFL clubs such as Derby, Villa (and if they ever publish their accounts possibly Sheffield Wednesday too) have been selling their stadiums and booking profits to comply with FFP. Under old rules this was specifically excluded from FFP.' 'However a look at the new Profitability and Sustainability rules shows that this clause appears to have been removed so clubs can sell land, their stadium etc to a "friendly" party (i.e. another entity controlled by the club owner) for a big sum and book a profit which reduces FFP/P&S losses.' 'Whilst I have some sympathy for Steve Gibson at Boro for being unhappy with the behaviour of Derby, Villa etc. the rules were approved by EFL club owners. So what has been done by these clubs gets a tick for compliance but a question mark for ethics.'

Inter Milan have agreed with their rivals AC Milan that their shared San Siro stadium should be knocked down. Originally they wanted to renovate the stadium, but now they have agreed that a new stadium should be built on nearby car parks. They will continue to play in the San Siro while the new stadium is built which will presumably take some years These projects always take longer than expected and cost more than expected: think Tottenham Hotspur. More here: New €630m stadium To me the two clubs sharing looked like Spurs and Arsenal having one stadium in North London, or even Celtic and Rangers sharing! But then one wonders about Dundee and Dundee United having their own stadiums on the same road which perhaps reminds us how crucial the ground usually is to a club's identity.

In another triumph for the 'Cashley' regime, Rafael Benitez is to leave Newcastle United when his contract expires next weekend. Toon fans think that he has tried his best in difficult circumstances. A brief statement on the club website offered little in the way of explanation. Benítez wanted greater control of Newcastle’s recruitment process, including the freedom to sign the players he wanted regardless of their age or potential resale value. Various unlikely and unpopular names are now being mooted as successors. The BBC's chief sports writer has said that 'the biggest losers will be the long-suffering fans of Newcastle United: The losers Ashley can't run the club properly, but he won't sell at a realistic price.

In the latest twist in the Coventry City saga, Sisu has described the ground share at Birmingham City as an 'absolute tragedy' and Joy Sepalla has said she will always be a Sky Blues fan: She also claimed that Wasps were behind attempts to buy the club as they had 'topped out' as a rugby club. They certainly are said to have big debts, but the rugby club swiftly denied any intention to make a bid for the Sky Blues. Sisu have said recently they want to build a new stadium on the site of Woodlands Academy. 100 years ago the city was celebrating the admission of the club to the Football League (more on this soon).

Freeze for season ticket prices

When I was growing up doing the football pools was a weekly ritual in most households who would dream of a big win. The only thing my father ever won was a few shillings on the 'Easy Six' which were anything but easy. In the summer use was made of Australian matches, but most people didn't bother then, arguing with good reason that they couldn't predict what would happen with teams with strange names: Australian football pools. Australian football has, of course, become much more professional in recent years. We do have summer leagues in the UK in the Highlands and Islands of Scotland. Much of it looks like Sunday league football. How else would one account for Top Joes who are bottom of Division Two of the Caithness League, having already conceded nearly six goals a game. Even worse are Uncle Bob's at the bottom of Division Two of the Inverness and District Amateur League who have conceded 50 goals. Culloden Blacksmiths are running away with the division ...

As Bury face a winding up petition, leading financial journalist David Conn discusses the road that led to financial ruin: Inside story Bury have faced recurrent financial challenges over the years, too often living beyond their means and relying on a benefactor to rescue them. It's not easy being a small club on the outskirts of Greater Manchester, but they are a historic club with a dedicated group of fans.

West Brom owner Guochuan Lai has stated he is unable to settle a club debt due to restrictions in place by the Chinese government: Baggies The £4.1m debt dates back to West Brom’s former ownership under Jeremy Peace, with Lai having inherited the loan following his takeover in 2016. In particular, Lai points to the fact that the Chinese government is currently restricting sports related investments. It is bad news for West Brom, as the debt they’re saddled with is accruing interest – having increased by £400,000 since it was taken out in 2014.

The story behind the sacking of Gary Monk at Birmingham City after a bizarre training ground dispute: Inside story One is left to wonder how about how some EFL clubs are run. Kieran Maguire of the PriceofFootball calls it 'a bizarre system of control and governance' and he is right.

Reading have been placed under a soft transfer embargo which means they must get the green light from the EFL to sign players: Soft transfer ban It is designed to stop clubs' finances going out of control. It is believed that Sheffield Wednesday may have been placed under a similar ban for submitting their accounts late.

Kieran Maguire of the Price of Football tweets, 'Mike Ashley’s Sports Direct continues its recent habit of buying back shares from the market. A further 153,000 just purchased taking total to 643,000 recently at cost of £2m. Could be for share option schemes but MA’s motives as mysterious as ever.'

Just how much it can cost to run a National League club is revealed by the 2017/18 accounts of Ebbsfleet United who, having been promoted from the National League South, reached the semi-finals of the play offs. Ultimate owner Dr Abdulla Al-Humaidi had to pump in £2.86m to keep the club afloat during the year. The cumulative loss was £9.69m. Promotion from the National League South saw an increase of £75k in central income to £119k: this is made up of seasonal payments from the National League and a one off solidarity payment from the Premier League. However, matchday income accounted for 51 per cent of turnover at £468k, up from £259k. Commercial activities accounted for 32 per cent of turnover at £290k. Overall turnover was £909k, up by over £350k. Player and staff costs amounted to £2.137m or 2.35 times turnover, the highest ratio I can recall in any division. Players and player management staff amounted to 38, only marginally up from 34. Management and administration staff...

After an intervention by Roman Abramovich, Frank Lampard has agreed to become Chelsea manager, reports the Sunday Times. Lampard insisted that he should be allowed at least two seasons at the Bridge and Abramovich rang Lampard to give him his personal assurance that he would be given at least two transfer windows. With the club currently serving a two window transfer ban, that would set Lampard up for the 2019-20 and 2020-21 seasons. Duncan Castles comments, 'The owner's intervention is particularly significant because his interest in the club was thought to be waning. The Russian put plans for a £1bn-plus stadium rebuild "on hold" last year after losing his entrepreneurial visa and took up residency in Israel. He was not seen at home games in 2018/19 and has stopped making payments of more than £1m a season for hospitality boxes at Stamford Bridge.' Lampard has nurtured a long-term ambition to manage Chelsea, but he did not expect it to come so soon. He s...

After a row between the EFL and some member clubs over a new TV deal with Sky, an independent report has found procedural failings in the way the matter was dealt with. The row led to Shaun Harvey stepping down as chief executive. His temporary replacement, executive chairwoman Debbie Jevans, has admitted that trust needs to be rebuilt between the EFL and clubs and the board will review how decisions on TV contracts are made. After a number of clubs expressed concern about how the new five year deal was pushed through last November, an independent report was commissioned from Harbottle and Lewis. They are a a London based law firm with over 60 years-experience advising technology, media and entertainment clients. The findings were sent to clubs in a confidential letter, but inevitably this has leaked and its contents were published in The Times yesterday. It found there was confusion over the composition of the commercial committee. It was not clear whether four members of the ...

Middlesbrough chairman Steve Gibson has stepped up his crusade on clubs he calls financial fair play (FFP) 'cheats', giving to large to the EFL: EFL must act Aston Villa and Derby County are among the clubs that he has criticised and there were even rumours of legal action against the Rams. There is no doubt that the FFP rules have been imperfectly enforced with a somewhat diluted example being made of Queens Park Rangers. However, I have always thought (and some lawyers agree) that they are open to legal challenge because they are potentially in conflict with competition law. The EFL therefore has to tread carefully.

Bolton Wanderers have been through a very difficult period, but hopefully things are now looking up with agreement for the Football Ventures consortium to take over the club. They were one of five bids received: New owners Football Ventures is a company registered in January with the sole purpose of buying Bolton. It has satisfied the administrators that it has funding for at least two years. The four strong consortium is led by Sharon Brittan. According to Bloomberg, 'Sharon Brittan serves as Non-Executive Director at UKCloud Limited. During a career spanning more than 25 years Sharon has completed multiple real estate development projects and now advises on investment and asset management. Her achievements included co-founder and CEO of Britannia Row Business Centre, an award-winning property offering flexible workspace solutions; CEO of One Alfred Place, a private members business club in the West End of London.' The club went into administration at the end of last se...

Plymouth Argyle owner, US-based businessman Simon Hallett has increased his shareholding in the club to 90 per cent, buying out the remaining 30 per cent of shares of former owner/chairman James Brent. That led to Brent and his daughter, Natasha, stepping down from the Pilgrims’ board of directors. Hallett wrote on his chairman's blog, 'My increased shareholding does not mean a change in the goal of financial sustainability that I outlined in my last letter. It does mean that I will provide more capital in coming months.' This will take the form of shares not debt. 'Some of that money will go to fund continuing, but shrinking, deficits, and some to provide the cash to make further necessary investments in our infrastructure (for example, a new sound system at Home Park!) Some, of course, will go to fund the football budget.' 'That budget will be enough to allow us to compete in League Two, but no amount of spending can guarantee success, so it will not be an...

It's been a long, hard fight for Blackpool fans but they have finally got rid of the Oyston family: New owner Simon Sadler, a lifelong fan of the club, has acquired a 96.2 per cent stake including the stadium, the somewhat dilapidated training ground and a hotel business. Born and raised in Blackpool, Mr. Sadler held senior roles in finance before setting up an asset management business, Segantii Capital Management, in Hong Kong in 2007, where he remains Chief Investment Officer. Mr. Sadler is acting in an individual and personal capacity as the new owner of the Club.

Cardiff City chairman Mehmet Dalman may stand down as takeover talks at Charlton reach an advanced stage: Takeover talks. Investment banker Dalman is one of the richest men in the country and has been involved in the game for a number of years. He used to have a two-and-a-half per cent stake in Manchester United and helped engineer the takeover by the Glazer family in 2004. He is a popular figure at Cardiff where has been since 2013. Now he wants to be an owner-chairman in his own right. This is the person who was referenced in a story published by Charlton fanzine editor Rick Everitt on the Voice of the Valley website on Monday. Controversial Belgian owner of Charlton Roland Duchatelet is apparently being difficult and unpredictable: Difficult negotiations

It's a question this article from The Guardian poses in relation to League Two Stevenage: How can you run a sustainable club? Running a sustainable Football League club is possible only if you are lucky, according to the Stevenage chairman, who is about to offer shares in his club to supporters. Phil Wallace has presided over the most successful period in Stevenage FC’s history since he bought the team in 1999. But with clubs in the Football League experiencing growing financial uncertainty – 52 of the 72 clubs reported losses in 2017-18 – Wallace says it is no longer enough simply to run your club well if you want to keep your head above water in the lower leagues. Stevenage finished just a point outside the League Two play-offs last season and posted a small profit in 2017-18. But the results were in large part due to the sale of the young defender Ben Wilmot to Premier League Watford and Wallace, whose main commercial interest is the Lamex Food Group, believes unexpected wi...

Football Italia reports, 'The Corriere dello Sport analysed Milan’s finances and warned they’ll reach June 30 running at a €100m loss for this year alone, €413m over five years. As the Rossoneri await the verdict of their appeal against the Financial Fair Play penalties, with another UEFA case ready to go for even more violations, the situation remains extremely unstable. The club is under its third ownership in three years, after Silvio Berlusconi, then Yonghong Li defaulted on his loan payments, meaning AC Milan was effectively repossessed by hedge fund Elliott Management. Failure to qualify for the Champions League put even more pressure on the finances and the Corriere dello Sport calculates that they are currently running at a loss of €100m for the 2018-19 season. The losses have been getting worse and worse over the last five years, from €91m in 2014 to €126m for 2017-18. Over the period of five years, Milan have been running at a loss of €413m.' On 22nd May 2018, t...

Following their takeover by a group of supporters, Gateshead have been relegated to the National League North next season, although they escaped being demoted to the third tier They will return to the Council-owned athletics stadium which is their normal home and will continue to be a full-time professional outfit: The Heed Speaking about controversial owner Ranjan Varghese and controversial finance director Joseph Cala, who had assumed day-to-day running of the club, National League chief executive Michael Tattersall said: 'They basically ran the place into the ground. They had sacked the manager and sacked all the staff … They were not paying football creditors and they didn't pay the National League the fines that had been imposed on them … They had no ground, no manager, no staff. In fact, by the end, there was nothing left.' 'Now the bad guys are gone and the good guys are back. I think the club can make a good go of it in National North.'

At one time it looked as if Chinese investors would be the next big wave in European football. But then the Chinese state clamped down on the outflow of capital, preferring money to be spent on the domestic game. The record of Chinese investors has been mixed. Fosun has played a key role in the transformation of Wolves into one of the leading clubs outside the 'big six'. They have invested tens of millions of pounds since 2016. Many Wolves fans hope that they could become the club to break the dominance of the top six, although others aspire to that role. However, Chinese businessman Tony Xia was forced to sell his majority stake in Aston Villa prior to the club earning promotion to the Premier League through the play offs. For many years, Southampton was seen as one of the solid mid-table clubs in the top flight with no danger of relegation and an outside chance of a place in Europe (they qualified for the Europa League twice, once for the play offs and once for the gro...

Having fought off a winding up order, although they still owe the taxman £800,000, relegated Notts County have two consortia interested in buying them. However, it turns out that the person advising one consortium has a conviction for fraud, albeit that he has changed his name by deed poll: Fresh crisis the club's next appearance to answer a winding up order is on July 10th. The case was adjourned for a second time to give them more time to find a buyer.

When the coach of a fifth division German team was told he was being sacked after the last game he wore fishing gear in protest: Jahn Hiesfield manager Club president Dietrich Hulsemann told the media that the club's staff and players may as well have been "fishing" they were so immobile in their previous game. A furious Markus Kay {the manager] decided to respond to what he considered a "public scolding" and so, with a fishing rod by his side, the 37-year-old watched his last match in charge in silence on a chair by the touchline, having donned a fishing vest and hat.M.

Controversial Charlton owner Roland Duchatelet has told fans of the SE7 club: 'we are stuck together': Duchatelet statement. After the club's Wembley play off triumph, there were hopes that a long awaited takeover of the club might be completed, but the unpopular Belgian claims that it is stuck on the question of former directors' loans, although at least one of them has a different version of events. Contract negotiations with manager Lee Bowyer, who has attracted interest from other Championship clubs, are yet to be completed. However, Duchatelet has made it clear that the sagacious supremo will have to stay in the Championship on a bare bones budget, a far from easy task given the number of clubs that have parachute payments and benefactor owners. Charlton fanzine editor Rick Everitt has denounced Duchatelet's latest statement: Rick Everitt puts him straight The Voice of the Valley editor has stated on Twitter, 'It is categorically untrue and a baref...

Newly promoted from step six of the non-league pyramid, Hashtag United are developing a new way of watching football. The brainchild of video blogger Stephen Owen, each match is condensed into a stylish social media package, along with plenty of behind the scenes action during the week. The 450,000 YouTube subscribers will now be able to watch action from the Essex Senior League rather than the Thurlow Nunn Division One South. The team will also be in the FA Vase. Hashag also have an academy scheme that aims to unearth hidden talent that has slipped through the net. Over 4,000 applicants have applied for a place in the team this year. The last winner, Scott Pollock, went on to win a dream move to the Football League with Northampton Town.

QPR decided to give their naming rights to a local charity and Loftus Road will be known as the Kiyan Prince Foundation Stadium next season following a vote by fans. Kiyan was a promising Academy player who was stabbed to death when he tried to break up a fight outside his school: New stadium name

It has been confirmed that Coventry City will play their games at the St. Andrews stadium of Birmingham City next season: Club statement Leading football journalist David Conn commented, '[this is] the second time the hedge fund owners Sisu have taken the club out of Coventry during their toxic time in charge.'

This report claims that the Qatar royal family will take over Leeds United sooner rather than later: Leeds takeover There is evidently serious interest from the Paris Saint-Germain owners who seem to have become somewhat disillusioned with the French club. Whether it will lead to an early deal remains to be seen. If it was concluded, even as a minority stake, it could produce a substantial financial boost that would transform the club's hopes of promotion to the Premier League.

Plans to establish a new version of the Champions League which would take it towards an American sports model with a largely exclusive group of teams are running into increasing opposition. Yesterday Premier League clubs issued a statement declaring 'their strong opposition to the proposed reform … which would alter the structure, calendar and competitiveness of league football.' The scheme would give the top 24 teams in the Champions League automatic qualification for the next year's competition. Just four teams would qualify on the basis of national performance and another four would have the chance of promotion from a second tier league. The English sides insisted that qualification must continue to depend on current domestic performance. The fight for a Champions League place enhances interest in the Premier League. Seven Spanish clubs also issued a statement describing the plans as 'a frontal attack to the competitive balance and the stability of domestic com...

It looks as if American businessman Mark Campbell is set to become the new majority shareholder at Sunderland. Due diligence has been completed and he looks set to take something between a 54 per cent and 74 per cent stake in the club: Summer revamp The authoritative Swiss Ramble has taken a look at Sunderland's 2017/18 accounts when the club was in the Championship, arguing that such an examination is an important means of understanding their fall from grace which saw them plunge from the Premier League to League One. Having failed to gain automatic promotion as many commentators anticipated, they were beaten in the play off final at Wembley by a last minute goal scored by Charlton Athletic. Following relegation, the club's loss almost doubled from £10.2m to £19.9m, as revenue basically halved from £123.5m to £63.7m and profit on player sales fell £26.5m to £6.6m.The £60m revenue decline was largely driven by broadcasting’s £47m (49%) fall from £96m to £49m, as the £42m p...

With their club under threat loyal Bury fans talk about what their club means to them in this short video: This is our Bury Three parties are interested in buying the club from Tim Dale and consideration of the winding up petition has been deferred until June 19th: Council leader tells Dale to sell the club as soon as possible Bury South MP Ivan Stewart has called for an investigation into debts incurred under former owner Stewart Day. He said they raised 'fundamental issues about fit and proper people' to own [football] clubs': MP intervenes

A non-league club in East London might not seem the obvious choice for American sports investors, but Trinity Sports Holdings have been pleased with their purchase of the National League outfit Dagenham and Redbridge. They have invested in a number of sports teams in the US. Unlike baseball, there are fewer breaks in the game when they can meet fans, so they have found other ways of reaching out to them and are pleased with the warmth of their reception. The investors engaged in an extensive search for a British football club, looking at a number of opportunities in League One and League Two, before choosing the Daggers. One of the attractions was the London location which made it an easy place to reach. Executive chairman Peter Freund told The Non-League Paper , 'The club was like a diamond in the rough. It had fallen on hard times and needed some love and attention, but we knew we could make an immediate impact.'

The New York Times reports on talks between Qatar and Leeds United: 'Qatar, the gas-rich Gulf state that has gained an outsized influence in global soccer, held advanced discussions to buy a stake in the storied English team Leeds United on Monday, according to two people with direct knowledge of the discussions. Qatar stunned the sports world when it secured the rights to host soccer’s World Cup in 2022. Since that vote in 2010 it has been among the most consequential nations in soccer, buying and investing huge amounts to turn Paris Saint-Germain into a powerhouse team and also becoming the biggest buyer of soccer rights on the continent through its BeIN Sports network.' 'The move for Leeds, which missed out on a return to the Premier League after losing a playoff semifinal to Derby last month, would be Qatar’s first foray into English soccer and most likely will lead to further scrutiny into its affairs at home and abroad. Human rights groups have drawn attention to th...

Guernsey-based millionaire Steve Lansdown has paid £10m into Bristol City for a new share issue. Bristol has punched below its weight as a city in football. After a trip to Barcelona, he developed a model of a club covering several sports. Barcelona incorporates not just football, but other sports such as basketball and water polo. When Bristol Rugby was going through a financial crisis more than a decade ago, Lansdown took it over. A model in the executive bar shows plans for a convention centre which will be built adjoining the Ashton Gate stadium and will house a 4,000-seater facility for Bristol Flyers basketball team, which has become another prong in the Bristol Sport trident. Season ticket-holders can attend all three sports and the different codes share some training facilities, along with coaching, medical expertise and innovation in areas such as social media. His clubs are also following the Barcelona model of producing young talent through his various academies. Lansdo...

There is a two month window of opportunity to sell newly promoted Charlton Athletic according to fanzine editor Rick Everitt: Window of opportunity The Voice of the Valley editor states: 'Lee Bowyer’s achievement in restoring the club to the Championship at Wembley on May 26th immediately enhanced the value of the club, simply by returning it to the next level to the Premier League. But it will not retain peak value for long. The scale of the financial challenge facing the Addicks back in the Championship will either stack up debt - which [controversial Belgian owner Rolad Duchatelet] will have to finance - or the limit to the available budget will create an increased risk of the team falling back into the third tier.' Writing from Ramsgate, Everitt notes: 'Duchatelet, if he fails to sell the club now, is likely to remain locked in a spiral of ever-increasing debt and will inevitably be even worse off when he does eventually hand over the reins.' ' While all th...

Last night's Champions League final was a bit of a damp squib from the perspective of the neutral, but such over hyped occasions often are. The BT commentators made desperate attempts to talk up the game. What is clear is that the chances of Premier League success in the competition are increasing over time, important as it morphs into a European Super League. Historically, English teams have been outperformed by Spanish teams and to some extent German teams. The Spanish duopoly of FC Barcelona and Real Madrid have won seven of the last ten Champions League titles. Distribution of broadcasting cash in La Liga is weighted towards the top teams, while Barcelona and Real Madrid have been both adept at using their international profile to gain large sponsorship contracts. This has meant the earnings of the two Spanish clubs have outpaced those in the Premier League. The best predictor of team performance is thought to be how much a team spends on player wages. Real Madrid and B...