The Political Economy of Football V2

There is concern that Oldham Athletic could be forced into administration and lose their ground: Latics could be pushed out of Boundary Park They were actually a founder member of the Premier League.

Brentford are currently fifth in the Championship. Next season they leave the atmospheric but dated Griffin Park for a new 17,250 capacity stadium just a mile away. It has been squeezed into a very cramped site, reflecting the advances that have been made in construction techniques, particularly in the use of cranes. It would not be harsh to say that Brentford have not been one of London's fashionable clubs, although I remember seeing them play in the pre-war movie The Arsenal Stadium Mystery. But they have modernised themselves impressively and have developed a very clever recruitment strategy based on buying low and selling high. Every year, to cover losses, Brentford sell at least one of their best players, but have still managed to secure five consecutive top half finishes. They have earned more than £120m from player sales since 2014. For example, Ezri Konsa was bought from Charlton Athletic for £2.5m. Then owner Roland Duchatelet was always willing to sell a promisin...

One often doesn't get much intelligent analysis of the situation of League Two clubs. In some respects, there is better coverage of the non-league system. However, here is an exception about Cambridge United: What next for Cambridge United? The financial situation has stabilised, but the football has disappointed. The article notes that there is a need for 'some answers as to what they want to be and how they intend to get there. Many questions have been asked of the structure of the football side of the club. It is a system that, ultimately, makes just one person accountable for everything.' What always strikes me about Cambridge United is that they are playing in a university city. One could the same about Oxford United, but Oxford still has a significant working class population and substantial mature manufacturing industry. Cambridge is more dominated by the university and hi-tech companies. If you want to support, say, Arsenal or Spurs they are relatively acce...

In a further step towards the globalisation of football, Atletico Madrid have been issued a licence to launch an Ottawa-based club in the Canadian Premier League in time for the team to be included in the 2020 season starting in April. The club will play in the 24,000-capacity TD Place Stadium in the Canadian capital, formerly the home of the now-defunct Ottawa Fury Football Club. For Atletico, it is a relatively low cost way of getting themselves better known internationally, an arena in which Real Madrid have excelled. To make the project possible, Atletico Madrid worked with Jeff Hunt, a Canadian businessman who holds stakes in the Canadian Football League's Ottawa Redblacks and in the Ontario Hockey League's Ottawa 67's. To make way for the club, the Canadian Premier League (CPL) has been expanded from seven to eight teams. This of itself reflects the relative weakness of soccer in Canada. The great Canadian passion is, of course, ice hockey, although women's...

I don't have time to analyse the accounts of every club, so I am grateful to Kieran Maguire of the Price of Football for providing information and analysis on the 2018/19 accounts of Lincoln City. This was the year in which they were promoted to League One. The price of promotion is revealed: 'Lincoln losses more than doubled to £2.2 million in 2019. Promotion costs estimated at over £600k took up some of this as some transfers had add on clauses when club promoted. Losses high by League Two standards but within budget. Lincoln spent over £1/2 million on player signings in 2018/19 as they invested in the squad to push for promotion...and it worked.' Lincoln had one of the highest League Two income totals (please note only they and Grimsby have published 2019 accounts to date so most figures from 2018). Maguire notes, 'Lincoln matchday income up 6%, TV 11% and commercial down 9% but latter includes player sales and cup contribution from previous season. TV will be up ...

It is amazing how much you can rack up in the way of losses even as a second tier non-league club. Admittedly, Torquay United were in the EFL. Even so, it is quite stunning that, according to Kieran Maguire, 'Torquay United lost £943k last year in the National League South. Total losses over £2.2 million. Owners commit to cover losses until 2020/21.' I have always thought that Torquay had quite a challenging task. The town has a large retired population, some of whom are not interested in football and others have retained allegiances to clubs elsewhere. You can view the accounts online, but they are not very informative as they are compiled under the 'exemption rule': Torquay United

Kieran Maguire of the Price of Football looks at the motivations for ownership in the Premier League: Profit, vanity or insanity? He notes: 'Football clubs can broadly arrange their finances in one of three ways, bank lending, owner loans or shares. In terms of the Premier League all three methods have been used.' The clubs reviewed are the Big Six plus Everton.

The losses incurred by West Ham United in the last financial year emphasise the need for the club to stay in the Premier League. The Hammers made a pre-tax loss of £28.2m, which they say was driven predominantly by investment in the squad and wages: West Ham finances Kieran Maguire of the PriceofFootball commented: 'West Ham losses last season highest of the decade, further adds to view that money has been wasted rather than not spent. Only a handful of clubs making a profit from day to day activities in the Premier League.' He added, 'West Ham have spent money over the decade, total net spend £289 million, how well it has been spent is what angers fans I suspect. Owners have earned £18.6 million interest from West Ham since acquiring the club. Most other owners (Abramovich, Bloom, Moshiri, Mansour, NSWE at Villa, King Power, Denim, even Mike Ashley) lend the money interest free.' 'Biggest cost for clubs is player wages. West Ham's has risen from £25k to £6...

The participation of Amanda Staveley in the projected takeover of Newcastle United is an issue for Mike Ashley, and indeed for some Newcastle fans. Her previous discussions with Newcastle led Ashley to brand her a 'tyre kicker' or 'time waster'. He did not like her turning up at his favoured curry house, Paradise in Hampstead, for his big Wednesday night out in 2017 and was angered that she was photographed leaving. Ms Staveley is known for her contact book with Gulf royals and rose to prominence by brokering the 2008 sale of Manchester City to Sheikh Mansour. Ms Staveley's PCP equity firm would provide 20 per cent of the price for the club with 10 per cent coming from her personally. The British billionaire Reuben brothers are thought to be involved. However, the bulk of the money would come from the Saudi public investment fund. It is believed that they have also set aside £200m for further investment in the club. It is being reported that Mike Ashley was ...

Saudi Arabia has made no secret of its wish to get involved in sport as part of its Vision 2020 project. Apart from anything else, other Gulf states are ahead of the curve, notably rivals Qatar. Saudi Arabia sees it as a rebranding exercise, something they hope will boost tourism in the desert kingdom. Critics call it sport washing because of what they see as the country's poor human rights record. It is said that there are plans to introduce 'KSA' (Kingdom of Saudi Arabia) branding on Newcastle shirts. There is a business case for investing in football clubs. Their valuation continues to rise on the back of multi-million pound media rights contracts. Newcastle has a super loyal following and real potential for global branding. However, for many these sports investments are a means of projecting soft power (as distinct from hard or military power) and distracting attention from media coverage of Middle Eastern states. According to a Newcastle Chronicle poll, fans...

Professor Simon Chadwick of Salford Business School remains sceptical of the proposed Saudi acquisition of Newcastle United. 'I remain unconvinced that the rumoured deal is tangible and real. I find it hard to believe that the Saudi Arabian government is involved. Such an acquisition would be inconsistent with the KSA's [Kingdom of Saudi Arabia] policy and strategy thus far,' he told offthepitch.com shortly after landing in Saudi Arabia's capital, Riyadh. I will be providing a detailed background analysis of this projected deal later in the day.

In his new book on The Price of £ootball, Kieran Maguire says of the Zurich blogger Swiss Ramble 'Sets the standards that others can only dream to achieve.' He has spent a lifetime working in finance and is multilingual. In his latest series of posts he looks at the revenue English clubs derive from European competitions. UEFA TV money earned by English clubs increased by a third (£105m) in 2018/19 from £322m to £427m, split between £352m from the Champions League and £75m from the Europa League. In fact, their European revenue has more than tripled in just four years – from only £129m in 2015. Only considering revenue earned by the English clubs that qualified for Europe in this period, the share of total revenue contributed by European TV money has increased from 8% in 2015 to 14% in 2019. Note: this excludes income from gate receipts and sponsorship success clause. However, there is a clear difference between earnings in the Champions League and the Europa League. In 20...

Managerial turnover is a feature of modern football, given the finances at stake and the expectations of fans. Whether changing manager does more than give an initial boost is a matter for debate. It does work sometimes, but the incoming manager inherits a squad he would not necessarily have chosen. Who are the longest serving managers in the history of the Premier League? Sir Alex and Arsene Wenger are obvious answers, but the others may be more of a surprise: Longest managerial reigns

Scottish Premiership clubs earn a greater percentage of their income from ticket sales than any other league in Europe, according to Uefa's latest Club Licensing Benchmark report. The report on football finances states that 43% of revenue in the Scottish top flight in 2018 came from gate receipts. That figure is almost three times the European average of 15%. A total of 98m euros was made from gate receipts in 2018 - far more than countries of a comparable population, such as Norway and Denmark. Read more here: Ranked 11th in Europe for income

A takeover of Chesterfield by fans has stalled, although owner Dave Allen wants it to go ahead. The accounts for the year to 30 June 2019 revealed a loss of £1.85m compared with £1.06m the previous year. Turnover was down by £1.9m on the previous year, reflecting the effects of relegation. However, over £1m was raised in player transfer fees in 2017/18. (The accounts don't appear to be available online at Companies House yet, but it often takes about five days after submission). The Chesterfield Community Trust entered into a period of exclusivity with Allen at the end of December, but this has not been renewed and other bids can now be made. Allen is continuing to put in £150k a month to keep the club going, although this month it will be £200k. You need deep pockets to own even a National League club. Loans owed to Allen at the year end amounted to £9.3m, compared to £7.1m the previous year. I am sceptical about the fan ownership model, not because it's a case of the ...

Getting a toehold for soccer in India has been not been easy, given the popularity of other sports. City Football Group, the leading global soccer business, has got involved, but what are the prospects for I-league clubs, now seen as a second tier behind the ISL? Read more here: Indian football's new deal The article asks: 'Will this be open season for mergers and takeovers? And is this the only way clubs in the I League, now relegated to the second tier in the country behind the ISL and forever struggling for finances, survive?' '“Either you need strong Indian backers such as the Jindals, Goenka or Tatas or you need CFG and their like,” says an ISL franchise official who did not want to be named because he is not authorised to talk to the media."' The sub-text here is about far Indian football needs to globalise to succeed, but it has to do so in a way that retains domestic support and roots.

An old Private Eye cartoon but still relevant Leading football finance analyst Kieran Maguire of Liverpool University, and author of a new book on the Price of £ootball has been making a fascinating series of comparisons between the finances of Tranmere Rovers and Manchester United who meet in the FA Cup today. In terms of revenue, for every £1 generated by the Wirral club, Manchester United make £136. For every £1 in wages paid by Tranmere, Manchester United pay £83.40. For every pound in transfers paid by Tranmere, Manchester United paid £18,219.10. Tranmere pay their board of directors nothing , Manchester United pay theirs £10.6m. Tranmere pay their shareholders nothing, Manchester United pay theirs £22 million a year. Tranmere Rovers have paid their bankers £1.2 million in interest since 2006, Manchester United have paid theirs £816 million. In his book, published by Agenda, Maguire states: 'There are many examples of fine owners in all divisions ... such as Nicola [...

Saudi Arabia's sovereign wealth fund is in talks to buy Newcastle United from Mike Ashley, but other buyers are also in the frame. Amanda Staveley is once again involved: Talks with Saudis The Wall Street Journal which broke the story referred to a purchase price in the region of £340m. They also suggested that the purchase could be completed in a matter of days. Up to now, Saudi Arabia has not followed a strategy of investing in football clubs elsewhere in the world, but rather one of seeking to attract top clubs to play in their own country. In January 2020 they staged the Spanish Super Cup in Jeddah with Saudi Spain’s top four teams including Barcelona and Real Madrid taking part. This will earn the Spanish football federation €35m - €40m over three years. However, it doesn't seem to have gone down too well with Spanish fans: Short shrift However, it has been thought for some time that they might also follow other Gulf States in acquiring a top club. There have ...

In a wide ranging interview sports minister Nigel Adams has criticised football's dependency on gambling, expressing serious concerns about clubs relying on money from gambling companies: Promises to address issue of betting within football He confirmed sponsorship and advertising deals with such firms will form part of the government’s review of the Gambling Act, which will begin within weeks. He commented, 'I appreciate finances aren’t brilliant at a lot of the clubs but they need to be mindful of the impact that these sort of deals have on vulnerable people, who could potentially have an issue with gambling.' EFL clubs in particular are reliant on money from gambling. Mr Adams is the Conservative MP for Selby and Ainsty, having been first elected in 2010. He has held the sports minister role since July last year. His main sport is cricket, having played competitive cricket in the York Senior League. He is secretary of the Lords and Commons Cricket Club.

The new owners of Charlton from Abu Dhabi have outlined a five year plan to take Charlton back to the Premier League, but first they need to stabilise the South-East London club that is at risk of relegation from the Championship: Five year master plan. His Excellency Tahnoon Nimer, chairman of Al Ain-based Abu Dhabi Business Development (ADBD) - the private office of Sheikh Saeed bin Tahnoun – and the majority shareholder in East Street Investments through his corporation, Panorama Magic General Contracting, sits on the new board as a director. Chairman Matt Southall was wary of comparisons made, understandably, with Abu Dhabi’s acquisition of Manchester City in 2008. However, he said that, like City, the Charlton board would not concentrate solely on the development of the football team, with a number of projects, including a brand new training complex spanning almost 40 acres, in the pipeline. He emphasised that Charlton are a completely separate entity to Manchester City, some...

The dispute between Manchester City and Uefa rumbles on. David Conn of The Guardian tends to take a rather sceptical and critical attitude towards City which he is entitled to do as a well-regarded sports journalist. However, personally I think that it is unlikely that City will be banned from next season's Champions League: City and financial fair play

Arsenal fans in Surrey are planning a breakaway club with the aim of rising through the non-league ranks like AFC Wimbledon: Dial Square FC Their plan is to return eventually to a purpose built stadium in Woolwich. This proposal has not gone down too well with Charlton fans who refer to Arsenal as 'Woolwich Rejects', but don't want them back in the area as competitors, albeit there are still quite a lot of Gooners in South-East London. Those behind the project should bear in mind the difficulties encountered by FC United. Even AFC Wimbledon have found raising money for their new stadium far from straightforward.

Fans risk of heart attacks because of the stress they place themselves under at matches, a new study finds: Cortisol levels It should be noted that the study is based on tests on the saliva of Brazilian fans. I also don't think much of their suggested solutions of dimming the lights and playing soothing music after matches. It would, of course, be against all current health advice to suggest that fans might calm down with an alcoholic drink after the game.

According to a study performed by DataPOWA, an AI-driven digital marketing agency specialising in sports and entertainment, Barcelona and Real Madrid are the clubs most valuable to brands in world football. The study - entitled the "POWA Index" - compares the sponsorship power of football clubs to their ranking on the Deloitte Football Money League - and the three highest-ranking clubs in terms of revenue, Barcelona, Real Madrid and Manchester United, also rank highest in terms of sponsorship impact. However, that's where the similarities between the two rankings end. While clubs like Bayern Munich, Manchester City and Tottenham all rank in the top eight on the Deloitte Football Money League, none of them feature higher than tenth on the POWA Index. Behind Barcelona and Real Madrid in first and second, respectively, are Manchester United in third, Arsenal in fourth, and Liverpool in fifth. Chelsea lie sixth, while Manchester City find themselves at tenth, despite havin...

The Liverpool Echo looks forward to Liverpool's next set of financial accounts, suggesting that the increased cost base may lead to a reduction in profits despite a projected £80m increase in revenues as the club's revival continues under FSG: Success on and off the pitch. Kieran Maguire teaches the Football Industries MBA at the University of Liverpool's Management School and his new book with Agenda on the Price of £ootball contains a great deal of fascinating information about Liverpool FC. Maguire is actually a Brighton supporter, but also has a soft spot for Tranmere Rovers.

That was the cry that rang round Old Trafford last night after Manchester United was defeated at home by Burnley for the first time since the 1960s. Protests were also directed at Ed Woodward, whose title of executive vice-chairman underplays his importance at the club. It might be noted that it's when things go wrong on the pitch (relatively speaking, United are still 5th) that fans are most vociferous about the Glazers and their treatment of the club as an American style sports franchise. Unsurprisingly, Kieran Maguire presents an in depth case study of Manchester United in his new book on 'The Price of £ootball' published by Agenda. His main conclusions are: The Glazer takeover was a big financial risk, but has paid off them [one might add, both in terms of capital appreciation and income]. Their commercial department is in a league of its own when it comes to striking deals. Sir Alex Ferguson worked wonders on a restricted budget in the early years of the takeover....

As yet unconfirmed reports are suggesting that Preston North End may be put on the market with a valuation of £50m. The club is being presented as having the potential to be the next Burnley, a club punching above its weight in the Premier League. Preston has, of course, a much bigger population than Burnley, also a founder member of the Football League. There is not said to be any pressure to sell and there have been no discussions with potential buyers, nor have advisers been hired. Property magnate Trevor Hemmings, who has been majority owner of Preston since 2010 through his vehicle Deepdale PNE Holdings, is in his eighties and last June his son Craig was named chairman of the club’s board. The club has a relatively low turnover by Championship standards, but is in profit. Preston’s Deepdale Stadium is owned by the club and the land on which it sits is occupied under a 125-year lease to Preston City Council. The club owns the freehold of the 14-acre Springfields training grou...

Everton's accounts for 2018/19 cover a thirteen month period which does impact on the bottom line. Writing from Zurich, the authoritative Swiss Ramble subjects them to his usual forensic analysis. He notes, 'Everton's £112m loss is the highest reported to date in the 2018/19 Premier League, though Chelsea also suffered a deficit over £100m. This was significantly more than the worst reported in 2017/18 (Crystal Palace £36m). Both Manchester clubs posted profits.' The loss is actually the fourth worst ever posted in the Premier League, though a long way below Manchester City £198m in 2010/11. Chief Executive Denise Barrett-Baxendale observed, 'These results reflect our position in the early stages of a long-term investment cycle.' [WG: Well, I suppose that is one way of putting a gloss on it. 'Investments' in players generate uncertain returns.] Indeed, the Swiss Ramble notes: 'Everton could have reduced the loss with more player sales, but the...

You'll have to read this interesting and reflective blog essay to find out, although they do both owners from the Gulf emirate of Abu Dhabi: Transfer window from hell A hint: 'The chasm may stretch more than 200 miles, 4,141 days, and one division, but the situation on the blue side of Manchester that fateful day [in 2008] is not too different from the current predicament at The Valley.'

In relation to the recent EFL charges against Derby County, which the club says are unlawful, Kieran Maguire of the PriceofFootball discusses some of the technical background to creative accounting practices: Protect me from what I want Amortisation is about how clubs can increase or decrease costs in the accounts in relation to how they account for players.

Playing Premier League matches abroad has always been controversial. It would be seen as the ultimate abandonment of domestic fans and an indication of how far globalisation had gone in football. Now Spurs chairman Daniel Levy has said he is 'open minded' to the idea: Daniel Levy He told the Cambridge University newspaper Varsity: 'We are in an industry where we are competing for talent, viewership and sponsors with other leagues across the world alongside other sports so we can never rule it out completely. In Spain, they are playing the Supercopa in Saudi Arabia this year, so we’ve got to be conscious that there needs to be a balance.' Levy would also like to see Saturday afternoon matches back on television, saying that we should not be wedded to something just because it is historic. He also welcomed the arrival of Amazon in match broadcasting.

Chi Onwurah, the MP for Newcastle upon Tyne Central, writes about a feeling of powerlessness among football fans. What she has to say is particularly related to Newcastle United, but has a wider applicability: Football fans feel powerless He states: 'With the billions pouring into the football "business", neither Newcastle United nor the Premier League consider themselves to be accountable to fans. As constituents make clear to me, fans feel powerless before the slow destruction of the game they love.' The challenge is, of course, to find a workable regulatory framework that inspires confidence among all stakeholders. That is what I am working on with the book I am writing for Agenda, but there are no easy answers.

Blogging from the European financial capital of Zurich, the authoritative Swiss Ramble takes a look at the latest Deloitte Money League with Barcelona topping the table this year. Spanish one-two for the second consecutive year, though Barcelona and Real Madrid switched places. No revenue growth at Madrid, but plan to emulate Barca by taking merchandising in-house next year. Atleti £324m and Valencia £163m posted impressive growth, but miles below big two. The combined revenue of the top 20 clubs rose by €939m (11%) to a record €9.3 bn. Main driver of growth was broadcasting, up €575m (16%), though commercial was also significantly up €312m (9%), while match day rose €51m (4%). On track to break €10 bn in next few years. The gap between top and bottom, defined as 1st place to 20th place, increased from €553m to a record €633m. This has been on a steadily upward trend, more than tripling from €207 million in 2006. 'In other words, it’s the usual story of the rich getting richer....

Everton have announced record losses of just under £112m (losses of £310m for the decade).. The BBC comments: 'after a £30.6m profit in 2017 and a £13.1m loss in 2018, the latest figures show the alarming rate of spending under majority shareholder Farhad Moshiri.' 2018/19 accounts Kieran Maguire of the PriceofFootball comments: 'Small print reveals [Alisher Usmanov's] USM doubled sponsorship for Finch Farm training ground to £12m. Moshiri has lent club a further £50m since June 2019.' He adds, 'Everton had a net spend of £101 million in 2018/19 reflecting shift in gear since "Moshirimov"took over.' Maguire notes, 'Total revenue down for 13 months to 30 June 2019 compared to 12 months in 2018. Has more than doubled over the last decade. Still a long way behind the "Big Six" but top of the "Other 14".' WG: Everton would regard themselves as historically and potentially a top six club and indeed played a key role in ...

Barcelona have reached the top of the Money League for the first time ever and at the same time become the first club to break the €800m barrier, generating revenue of €840.8m. The top 20 highest earning football clubs for the 2018/19 season recorded combined revenues of €9.3bn (up 11 per cent), a new record. Manchester United (€711.5m) are in third but are at risk of losing their position as the Premier League’s highest revenue generating club for the first time in next year’s edition of the Money League. Tottenham Hotspur are eighth, the club’s highest ever position, and have overtaken Arsenal and Chelsea to become London’s highest revenue generating club for the first time since 1996/97. The composition of the top 20 overall remains relatively stable with only two new entrants to the Money League – Olympique Lyonnais ranked 17th (up from 28th) and Napoli ranked 20th (up from 21st). To them that hath shall be given.

At the moment they have topped the Deloitte Money League, Barcelona have sacked their coach. They have sacked Ernesto Valverde and replaced him with former Real Betis coach Quique Setien. Valverde helped the club to two successive La Liga titles and they lead on goal difference this season. However, the Catalan side have produced a series of unconvincing displays under his leadership and have failed to reach the Champions League final. The Champions League is of vital importance to the club for both money and prestige. It is the first time that Barcelona has become the world's richest club, thanks to the success of its merchandising. Over the 2018/19 season, new commercial activities allowed it to earn €840.8m, roughly €150m more than a year earlier, and €83.5m more than rivals Real Madrid. Rather than relying on outside parties to deliver its sales, the club formed Barca Licensing and Merchandising in 2018. It is responsible for retail stores and shirt sales worldwide. Da...

Most clubs, particularly smaller ones, would welcome an open minded lottery winner investing in them. That is what happened at Partick Thistle and today Colin Weir's funeral cortége will arrive at Firhill en route to his funeral: Lottery winner's farewell Weir won £161m with his now ex-wife Christine in 2011. The debts of Partick Thistle were cleared and a new academy set up. Weir gifted a 20 per cent shareholding to the club's Trust in 2015 with another 55 per cent due to arrive in March. Thistle have always billed themselves as 'The Great Glasgow Alternative' in a city dominated by Celtic and Rangers. It's not a club a glory hunter would support, but it can claim to have a non-sectarian and inclusive fanbase. It is also probably more middle class in its composition.

Bill Shankly was once asked what was the greatest team in the world? His answer was, of course, Liverpool. And what is the second greatest team? Liverpool Reserves. If that was the case, the resultant league would be rather strange. Liverpool fans are justifiably celebrating the excellence of their current team. But is the dominance of Liverpool and Manchester City good for the game as a whole? Or does it make the Premier League 'product' less attractive? Tony Cascarino argues in The Times this morning that the Premier League is increasingly looking like Scotland ten years ago when Celtic and Rangers were dominant - and arguably that became boring except for the fans of these two clubs. (As it so happens, Celtic and Rangers are currently well ahead of the third placed club, so perhaps the natural order north of the border is being restored). Cascarino argues: 'We are blinded by the long-established view that the Premier League is the hardest and most competitive...

They call him 'The Guv'nor': the Swiss Ramble who blogs from Zurich on football finances. This time he deploys his forensic skills and ability to read a set of accounts to consider the case of Birmingham City (2018/19 figures), enough to give anyone the blues. Their fans have been put through the wringer and they now face the prospect of another points deduction. The Swiss Ramble notes, 'As a result of their fancy financial footwork [a stadium sale], the Blues £8m loss was nowhere near the worst reported in the Championship. Very few clubs manage to make money in this extremely competitive division, though largest losses often from promoted clubs – including hefty promotion bonuses.' The club sold their stadium for £23m, which produced a £17m gain (deduct £7m book value, add £1m release of capital grant). If this transaction were excluded, they would have reported a large £26m loss. Interestingly, it was a much lower sale price than Rams £81m and Owls £60m. It ...

Steve Sutherland discusses the betting controversy enveloping the FA: Betting deal He notes: 'Three years ago, the Football Association indicated that it wanted to distance itself from the gambling industry by ending its £4million-a-year sponsorship from Ladbrokes, who are owned by GVC Holdings. It’s little wonder then that The FA are receiving heavy criticism over the sale of FA Cup rights to BET365 via its deal with sports rights agency IMG, a deal which is due to run until 2024.' He says, 'Ideally I’d like to see gambling sponsorships go the way of tobacco and alcohol, both of which were major sponsors of sport'but admits this is not realistic because of the financial effect it would have on clubs and suggests an alternative approach.

As I struggle in my first steps to learn Spanish, the authoritative and no doubt multi-lingual Swiss Ramble reports with his usual authority on the 2018/19 accounts of Atletico Madrid. Profit before tax almost tripled from €12m to €34m (profit after tax up from €4m to €14m), as revenue rose €71m (23%) to a record €384m and profit on player sales shot up €70m to €86m. The club's profits have been improving with their last loss reported eight years ago in 2011. Since then, they have reported aggregate profits of €73m, including their highest ever surplus of €34m in 2019 (€14m after tax). The main driver of the €71m revenue increase was broadcasting, up €47m (30%) to €205m, mainly due to new Champions League TV deal. Commercial also rose €20m (21%) to €112m, while match day was up €4m (7%) to €66m. Most clubs in La Liga are profitable, but the club's €14m profit after tax is towards the top of the table. In 2018/19 they find themselves between Real Madrid €38m and Barcelona €5...

The authoritative Swiss Ramble reports on Chelsea’s 2018/19 financial results, including an explanation of why they reported a £102m pre-tax loss. The Zurich-based analyst notes, 'Chelsea swung from £67m profit before tax to a £102m loss. a huge £169m deterioration. Although revenue slightly increased by £3m (1%) to a record £447m, the damage was done by profit on player sales falling £53m to £65m and expenses rising by a hefty £119m. Loss after tax was £97m. He continues, 'Unsurprisingly, Chelsea's £102m loss before tax is the highest reported to date in the 2018/19 Premier League and significantly more than the worst reported in 2017/18 (Crystal Palace £36m). Both Manchester clubs posted profits: United £27m and City £10m.' 'The £102m loss was their second biggest ever, only surpassed by £140m in 2005. It follows two consecutive profitable years: £16m in 2017 and £67m in 2018. This season should be better, due to the return to the lucrative Champions League and...

Nothing symbolises the changing world of football more than where footballers are housed. At one time they were seen by the largely local owners of football clubs as artisans and were treated as such, being allocated a house by the club and going to the ground on the bus. On Christmas Day, they might rely on a lift from a fan. Footballers with supplementary sources of income like Sam Bartram at Charlton (he had a sports shop) might be able to afford a semi in a respectable suburb like Bexleyheath and a modest car to go with it. In his excellent book My Father and Other Working-Class Football Heroes Gary Imlach notes that 'The club house stood solidly in the social tradition of tied-housing for key workers ... It was sound business for the clubs - they could assemble a portfolio of property, get a rental return on their investment and help contribute to a stable home life for their key performers.' '[The] eviction clause in the standard tenancy agreement also gave them...

AFC Sunderland has been officially put on the market by owner Stewart Donald in response to pressure from supporters groups about the lack of progress on the pitch. There have been private talks with potential buyers over the last few months. Sunderland were beaten in the play off finals by Charlton Athletic at the end of last season. The Addicks have now been sold to an Abu Dhabi based consortium. In a video released yesterday, the new (English) chairman said that the London location had been a key factor in attracting the purchasers.

Southend United is the latest EFL club where players have not received their wages on time: Seven players awaiting wages Payment will apparently be made later this week, but the EFL and PFA are said to be concerned about the way the club is being run. Chairman Ron Martin has blamed it on the festive period, but presumably that also occurs at other clubs: Explanation of late payment

Birmingham City could be at risk of another points deduction. The club have issued the following brief statement: 'The Club confirms that it has been charged with a breach of EFL Regulations in relation to a business plan imposed upon us in the 2018/19 season. The Club denies the charge and we await the outcome of ongoing disciplinary proceedings. We shall be making no further comment at this time.' Further information about the underlying issues is provided here: Financial controls The club are expected to publish their 2018/19 accounts later this week. They have been filed at Companies House, but there is usually a five day time lag. They are owned by a sports holding company in Hong Kong. Birmingham Live review the unhappy situation here: City set to reveal vital figures Kieran Maguire of the PriceofFootball reports: 'Birmingham City have operating loss of £29.5m for 2019 but reduce this by selling property to the owners for £23m and booking a profit of £17m on...

Everton are facing the biggest losses in their history and leading football finance expert Kieran Maguire says that they have suffered from poor management decisions: Sunday Telegraph report But there is new hope for the club with Russian billionaire Alisher Usmanov keen to get involved. He was formerly a significant shareholder at Arsenal, and still retains an affection for the North London club, but is prepared to help his business partner Farhad Moshiri at Everton. Mr Moshiri is executive chairman and a shareholder in Mr Usmanov's holding company, USM. Mr Usmanov has a fortune of $16bn from a variety of enterprises, but is far less reliant on resource extraction than many Russian businessmen. Mr Usmanov revealed his intentions over lunch with the head of the Moscow bureau of the Financial Times. Although the interview seems to have been somewhat tense at times, Mr Usmanov was open about his intentions. He felt he could achieved something at Arsenal, but it became clear t...

A fans' takeover at Chesterfield is being talked about: Brink of fans takeover The former Football League club are currently in the relegation positions in the National League. They left their atmospheric ground at Saltergate (which I enjoyed visiting) and have a compact modern stadium. Chesterfield FC Community Trust has entered into a 'period of exclusivity' with majority shareholder Dave Allen to try and reach a deal by February. The Trust hopes to secure a 84 per cent shareholding and bring to an end Allen's ten year involvement with the club. One challenge in terms of catchment has always been proximity to the two Sheffield clubs, one now in the Premier League. I am sceptical about fan takeovers, but I wish them well.

Roland Duchatelet's regime at Charlton Athletic has now come to an end, to the relief at Addicks fans, but he also at one time owned Standard Liege. Fans there have found that life is better without Roland, but he did not walk away empty handed: Roland Duchatelet

Kieran Maguire of the PriceofFootball reports that E20 LLP, the company that rents out the London stadium to West Ham for £2.5m, have published losses of £17m for 2018/19, following on from losses in previous years of £17m, £208m and £105m. The analyst called 'Kevin' by the media, thus confusing him with a well-known journo, comments 'West Ham owners getting a great deal, not sure taxpayers are as happy.' Or, indeed, some supporters of other London clubs. Maguire continues, 'E20 the London Stadium landlord show rent from West Ham of £2.7 million on a stadium that cost £323m to convert for football use and £486m to build. That works out as a yield of 0.33%, which I suspect wouldn’t give Dion Dublin a boner on Homes Under The Hammer.'

One always has to be cautious of clickbait with Mail Online, but some of their stories have real substance, including this one about West Bromwich Albion: Fans demand investigations into loan The report states that 'Fans are demanding that the club open an investigation into a controversial £3.7million loan made to the company of former owner Jeremy Peace before his 2016 sale to Chinese businessman Guochuan Lai. Sportsmail revealed details of the legal dispute between Shareholders 4 Albion (S4A) and West Brom last September over a loan which the fans allege enabled Peace to sell the club for £200m, and they are now calling for a formal inquiry into the matter.' S4A want Peace to repay the loan in order to give manager Slaven Bilic funds to strengthen his squad during the transfer window as the Baggies push for a return to the Premier League, but that would require pressure from the club so they have appealed to fans for backing.

There has been a slight delay in playing Derby County players, but they should be paid today: Wages issue An investment in the pipeline has yet to be signed off. Derby fans seem to be relatively relaxed about the situation and in some respects it is a media story that is making something out of very little. It's really 'small earthquake in Derby' recalling the classic headline 'small earthquake in Chile.' I don't think Rams fans have too much to be concerned about on this particular issue. A somewhat different view is taken by Martin Calladine of 'The Ugly Game': 'Every time there's news about Derby's unsustainable spending or FFP or selling the ground, there are Derby fans insisting Mel would never let any harm come to the club. But it is possible to kill a club with kindness as well as with recklessness or incompetence.'