The Political Economy of Football V2

Charlton's debt to controversial Belgian owner Roland Duchatelet stood at £67m last June, newly published accounts for 2018/19 state. It should be noted that this includes what he paid the previous owners for the club in January 2014. Duchatelet left that sum on the books as debt and charged the club interest on its own purchase price. Operating loss for 2018/19 was £11.9m compared to £13.3m in 17/18, mainly the result of additional income from play-offs and reduced operating expenses. Turnover was £7.9m, up from £7.3m. Staff costs were £10.4m from £10.2m, probably reflecting player bonuses. The club reports it has received £4.2m for player disposals since June 30th last year and paid out £221k. This is up to date as the accounts were not finalised until March 24th. Profit on player disposals was £2.9m in 18/19, down from £4.0m in 17/18.

Northampton Town lost £1.67 million in 2018/19, reports Kieran Maguire of the PriceofFootball. Northampton Town survival due to continued support from parent company and other companies owned by directors of over £5.5 million. Northampton Town bought players for £100k in 2018/19. There were sales too but figures unavailable as club doesn’t produce profit and loss account data. The accounts state that 'The financial statements indicate that the company has insufficient cash reserves to continue trading without securing additional funding.' The club chairman has stated that he is pleased with the financial progress the club has made: Reduced losses

Locked down in his Zurich fastness, the Swiss Ramble analyses the recently published 2018/19 accounts of Nottingham Forest. He comments, 'There are some signs that Forest are moving in the right direction under Evangelos Marinakis, though the Championship is incredibly competitive, so there is no guarantee of success, especially as Forest are competing against many clubs fortified by parachute payments.' The board has stated that remaining within the discipline of EFL’s Profitability and Sustainability Rules is a high priority. If required, this will be achieved by taking 'tough decisions' on player sales, 'notwithstanding substantial investment in the playing squad'. The reality is that the club is still 'dependent on funding from its parent company'. In the last 10 years various owners have pumped £149m into the club. The vast majority of that has been used to simply cover operating losses with only £10m spent on improving infrastructure. Forest br...

Portsmouth made £2m profit in 2018/19 on back of revenue up 30% and profits on player sales of £3.3m, reports Kieran Maguire of the PriceofFootball. This compares with a £1.36m loss the previous year. Cup runs and player sales boosted income: Checkatrade Trophy success If Portsmouth are promoted to the Premier League will have to pay up to £4 million to a previous owner.

Doncaster Rovers made a loss of £1.85 million in 2018/19 and total losses over the years are over £33 million reports Kieran Maguire of the PriceofFootball. The losses in the previous year were £2.79m. The club owed the owners over £6m in interest free loans at 30 June 2019. Player sales brought in over £1m in 2019/20. Doncaster Rovers did not sign any players for fees in 2018/19. As a smaller company the club chose to file abridged accounts which are limited in the detail they provide: Club accounts

Southampton had an operating loss of £60m in 2018/19 as income fell slightly and costs increased, reports Kieran Maguire of the PriceofFootball Profits on player sales reduced the loss to just £39m. Last year there was a profit of £29m. The club put the difference down to player trading which can be highly volatile: 2018/19 accounts Southampton player trading: Purchases £67m sales £34m. Owner Gao Jisheng hasn’t invested any money into the club but also hasn’t taken any out. It should be noted that in 2017/18 the thirteen Premier League teams who have reported their financial results to date collectively lost £226 million. In 2018/19 losses for those clubs are £518 million.

Auditors have qualified the Notts County accounts as nearly £1.5m of supposed revenue (out of a total of £5.5m) in 2017/18 couldn’t be properly accounted for, reports Kieran Maguire of the PriceofFootball. The club had ‘other creditors’ of £9.4m at 30 June 2019 but a large proportion of this was written off when the new Isle of Man based owners acquired the club in July 2019 and lent the club £3.5m interest free. Notts County lost £2.8m in 2018/19 taking total losses over the years to £23.3m. County wrote off £42k from a player in 2018/19 and signed players for £236k.

After years of hard work financially stabilising the club, QPR are close to the edge again because of the coronavirus pandemic: Close to the edge

The Swiss Ramble analyses Fulham's financial results for 2018/19. They reduced their loss from £45m to £20m. However, the club still lost money, despite revenue rising £100m from £38m to £138m following promotion, as competing in the Premier League increased expenses by £63m, while profit on player sales fell £11m to £3m. The main driver of the £100m revenue increase was broadcasting, which rose £87m from £22m to £109m, due to the significantly more lucrative Premier League TV deal, though commercial also grew £8m (88%) to £18m, while gate receipts were up £3.7m (53%) to £10.7m. Revenue will dramatically fall in 2019/20 to around £65-70m, despite parachute payment. The £43m parachute payment is much higher than £4.6m solidarity payment that most Championship clubs receive. Fulham will only get two years of parachutes, as they were relegated after just one season in the top flight. TV money included £102m from the Premier League. Received £83m equal payment (50% domestic deal, 1...

A proposed £340 million takeover of Newcastle United appears to have moved a step closer, with the Premier League having been informed of a bid led by the Public Investment Fund of Saudi Arabia. The organisation is understood to have been formally made aware of the attempt to buy out Mike Ashley, with PIF, the largest sovereign wealth fund in the world, taking an 80 per cent stake if the deal goes through. Amanda Staveley’s PCP Capital is expected to acquire 10 per cent of the club, with the remaining 10 per cent taken by Reuben Brothers, the investment body of one of Britain’s wealthiest families, who own Newcastle racecourse and have a large portfolio of properties and assets worth more than £18 billion.

The annual report of Blades Leisure Limited has a justifiably celebratory tone. It notes that the 2018/19 season was a 'landmark' one for Sheffield United. 'The Club's long term strategy is to be a self-sustaining, globally recognised Club competing in the top tier of English football.' It considers that 'The Club has a tremendous opportunity this season to make its mark on the global stage and it is critical that we optimise this ... We will invest in globalising the Sheffield United brand.' The truncation of the season is therefore a particular blow for the Blades. No one knows what is going to happen about European qualification which would have been the next stage in their development.' Financial losses for the year ending June 2019 were £21.5m, up from £2m, 'demonstrating the exceptional cost of promotion to the Premier League.' They would have been even higher without player sales. In particular David Brooks went to Bournemouth for a ...

Non-league clubs who were in line for promotion may sue the Football Association after it declared the season below National League level null and void: Clubs threaten legal action

Bristol Rovers had an operating loss of £3.4 million in 2018/19. Would have been £4 million had it not been for profits on player sales, reports Kieran Maguire of the PriceofFootball. Bristol Rovers player trading 2018/19: Purchases £387k sales £720k. Bristol Rovers owe over £16 million to offshore tax haven based owners Dwayne Sports in Jersey, owned by the Al-Qadi family. Bristol Rovers total losses now exceed £24 million. The club president Wael Al-Qadi has said he will protect the club against debts of £24m: Pledge on debt Although the owner says that the level of debt is not unusual in the current football climate and is all internal, it is a large amount for a League One club.

Salford City lost £3.3 million or £63,000 a week in the National League in 2018/19 in getting promoted to the EFL, reports Kieran Maguire of the PriceofFootball. Salford City owners Project 92 Ltd had lent the club over £5.4 million by June 2019. Project 92 Ltd itself owes £8.2 million to directors and shareholders. The majority of this (£6.4 million) appears to be from a shareholder, who many believe to be Peter Lim. Salford City spent £488,000 on player signings in 2018/19. This is higher than 23 clubs in League Two in the EFL in the same season.

Huddersfield Town operating profit down from £23m to less than £2m in 2018/19, reports Kieran Maguire of the PriceofFootball. Turnover fell from £125m to £119m. This was mainly due to lower prize money linked to a lower table position. Huddersfield wage bill up slightly. Would have been much higher had relegation been avoided as big incentive payments included in contracts. Huddersfield player trading 2018/19: Purchases £46m sales £13m. The club owe over £20m on player purchases but also have a £31m new bank loan. Part of reason why Huddersfield have spent so little on players 2019/20 is that Dean Hoyle is due £15m this season followed by £10m in each of following two years. Bank loan of £31m due for repayment 2019/20 too which takes up most of parachute payments. More about payments to Hoyle here: £35m bill Total liabilities to £139 million following increased borrowing and signing players on credit. Lots of cash flowing around from borrowing and repayment loans in 2018/19 i...

Leeds United players, coaching staff and senior management have agreed to take a partial wages deferral because of the coronavirus pandemic. This will ensure that non-playing staff can continue to be paid: Leeds United That a club as big and successful at Leeds have had to take this step brings home the financial impact of the crisis on football clubs. Birmingham City have already halved wages and Forest Green Rovers are relying on government support schemes.

Derby County are engaged in talks about a 'major investment' with American billionaire Michael Dell who is listed as the 27th richest man in the world. In 2019 he was linked with a potential bid for Sunderland: Investment talks

Tahnoon Nimer could sell Charlton Athletic before the takeover of the club is ratified by the EFL. Having paid £1 for the club, he is reported to be asking for at least £2m: Club for sale It is understood there is at least one “substantial” interested party, while another ended negotiations due to the complexity of the deal.

Napoli are back in profit with record revenues of €206m. Sales of players were a major contributor to improved financial performance, a trend that can be seen across leading European clubs: Napoli returns to profit

Leeds United owner Andrea Radrizzani reckons that losing five home games because of the Covid-19 crisis will cost the club £2.5m and it is already losing £8m - £10m a year. However, he is hopeful of securing promotion to the Premier League on the pitch: Disaster for club's finances

AFC Wimbledon have issued a statement in which they admit that their plans to build a new stadium at Plough Lane could be hit by the coronavirus pandemic: Trust voice stadium build concerns Fans engaged in a substantial and highly successful fund raising effort for the new stadium by selling bonds.

The authoritative Swiss Ramble looks at the financial impact of the coronavirus crisis on football, although he warns that it is an unprecedented event and many of the figures we have available are not definitive. Even before coronavirus, football did not look like a particularly healthy business, as few clubs actually made any money. Premier League clubs earn a lot of revenue (£5.2 bn), but make a net loss of £160m, averaging £8m a club. Half of the 20 clubs have reported losses. It’s even worse in the Championship where clubs reported total losses of £358m (excluding £138m of accounting profits for inter-group stadium sales) and only four of the 24 clubs were profitable (three of them with less than £3m). Owner support/funding is vital in this division. Similarly, League One is largely loss-making with only nine of the clubs posting profits – and six of these are less than half a million. In fact, the two largest reported profits would also have been losses without exceptional gai...

National League side Yeovil Town have followed the example of Hearts and asked their players and staff to take an immediate 50 per cent pay cut to safeguard the future of the club: Asked to take pay cut According to the club's co-owner the suspension of league fixtures would create a £400,000 financial hole between now and the end of June. He said Yeovil’s relegation from the Football League last season meant they operated with higher losses than many non-league clubs. More than a dozen players are contracted beyond the initial season end date of April, including nine until June 2021. Yeovil’s highest earner takes home around £1,200 a week.

Serie A faces losses of €720m if it does not finish the season according to Deloitte. The Italian sports minister has suggested that games could be resumed in May, but that seems ambitious given the scale of the crisis in Italy: Big bill for Serie A

Writing from his Zurich fastness, the Swiss Ramble analyses the recent published accounts of AFC Bournemouth for 2019/19. CEO Neill Blake said, 'focus was to consolidate our position in the Premier League through targeted expenditure on assets and expertise in the playing squad and supporting infrastructure.' The Swiss Ramble comments, 'This is a big challenge with their limited finances, so owner support still required.' On January 2019 Maxim Demin once again took full ownership of the club by buying back the 25% shareholding that he had sold in November 2015 to Peak6 Football Holdings, an American investment firm based in Chicago. In the eight seasons since Maxim Demin arrived, the club's main source of funds has been £130m from owners (£109m loans & £21m preference shares) with £18m from operations. Most of this (£121m) has been spent (net) on players with £17m on infrastructure, and a £10m increase in cash balance. The club made a small £2m cash loss fr...

Leeds United are expected to release financial results soon which will show that their revenue in 2018/19 climbed to nearly £50m. It was just over £40m in the previous year and £34m the year before that: Leeds financial results The club is the best supported one outside the Premier League.

Fulham, who lost £59 million in getting to the ‘promised land’ of the Premier League in 2018, lost £22 million in their one season there despite revenue more than trebling, reports Kieran Maguire. Fulham’s loans from parent company converted into shares almost immediately. Sales of Ryan Sessignon etc since year end have brought in a net £14 million. Fulham committed to spending £99 million on capital projects at end of 2018/19. Fulham player trading in 2018/19: purchases £120 million, sales £4 million. Fulham are owed £6.5 million by other clubs for player sales and owe £80 million in outstanding instalments on player purchases.

This blog essay expresses concerns about West Ham United's finances in the wake of the coronavirus epidemic: Facing financial black hole All clubs will face financial challenges if crucial television income is substantially reduced because matches can't be played. Although West Ham United announced £27m losses for the 2018/19 financial year, losses have shot up across the Premier League. However, a particular problem is that co-owner David Sullivan's money is tied up in a property portfolio which is likely to plummet in value. Like many rich individuals, he is not very liquid.

Some former directors of Charlton Athletic are ready to take out an injunction to wrest control from East Street Investments and force back control to controversial Belgian Roland Duchatelet: Ready to ramp up legal proceedings Tahnoon Nimer has run his power struggle with Matt Southall and appointed two Romanians to the Charlton board. They are meeting heads of department this morning.

Former Charlton plc chairman Derek Chappell is behind a move that could yet unwind the takeover of Charlton Athletic by ESI and put controversial Belgian owner Roland Duchatelet back in charge, reveals fanzine editor Rick Everitt: Ex-chairman's bid Writing from his Ramsgate fastness, Everitt gives some hope to Charlton fans when he states: '[Former owner Roland] Duchatelet may not want the club back, but he is unlikely to allow it to slide into administration because that could result in tens of millions of loans from his Staprix NV being wiped out, as well as a likely ten-point deduction which could lead to relegation.' However, the fanzine editor and one time Charlton employee also warns: 'Until and unless Nimer satisfies the EFL, the club’s ability to pay its bills – including player and staff wages – is in question, due in part to a spending spree on consultants and lifestyle benefits for Southall and a string of associates since the turn of the year. Voice of T...

The EFL has set out a package of financial help to clubs: Update on coronavirus The EFL stated that 'measures are to be put in place to immediately assist with cash flow via a £50million short-term relief package. This fund consists of the remaining Basic Award payments being advanced to Clubs immediately, with the remainder made up through interest-free loan facility available to Clubs, calculated in line with the EFL’s Article of Associations.' Under the terms of the relief fund, Championship clubs will receive their remaining £800,000 award payment from the Premier League on Thursday. In addition, they will be able to apply for a £584,000 interest-free loan. For League One clubs the figures are £250,000 and £183,000, and for League Two sides they are £164,000 and £120,000. 'The primary objective, in order to protect competition integrity, is to deliver a successful conclusion to the 2019/20 season, subject to the over-riding priority around health and well-being....

Bournemouth lost £32 million pre tax in 2018/19, reports Kieran Maguire of the PriceofFootball. The club borrowed a net £39.6 million in 2018/19. To give some context, Premier League operating losses for the 11 teams who have reported financial results to date have increased from £179 million to £430 million. Bournemouth generate over 88% of total income from the Premier League TV deal. The Cherries pay wages of £85 for every £100 of income, highest in the Premier League. UEFA red line is 70%. Bournemouth player trading, purchases £94m and sales £5m. Bournemouth owe their owner £109 million. Since year end player purchases £35 million and sales £26m. One fan commented: 'I think a lot of the players they have bought were with a view to selling them at a profit after a few years but they have never successfully completed a high value sale.'

It's not easy to estimate how much Huddersfield Town would lose from the cancellation of the rest of the season, but a rough-and-ready calculation suggests a little over £3m or 19 per cent of their annual revenue: Losses from coronavirus Preston North End are better off than clubs lower down the pyramid and they have been prudently run by their billionaire backer, but they still face a big financial hit: Preston North End finances Cheltenham Town say that they face no immediate financial threat, but the sale of season tickets in May is normally important to fund them through the summer: Robins want to finish the season Plymouth Argyle chairman Simon Hallett has said that the Pilgrims are better placed than most clubs to withstand the effects of the Coronavirus crisis with the club being largely debt free: Heartfelt message to fans

Many Scottish football clubs could go bust in the next few months if they do not receive emergency funding says football finance expert Kieran Maguire: Funding needed to survive outbreak Maguire said: 'What football now has is a cash flow crisis. Match day sales account for around half of the money taken in by Scottish clubs. They are reliant on supporters coming through the turnstiles to pay the bills. Even if they return to a scenario where matches are taking place behind closed doors in order to complete the season that is not going to address the problems that the clubs have. Having season ticket money in will negate cash flow issues for the bigger clubs. If you are a smaller club then your finances tend to be quite precarious. Dunfermline Athletic had been on budget until the crisis struck, but are now hoping that season ticket sales in May will provide much needed cash flow: Dunfermline South of the border there have been calls for Premier League clubs to fund their po...

Manchester United have seen £1 billion wiped off their share value in the stock market crash, but how it does it actually affect them? Football finance guru Kieran Maguire gives his opinion: Share price fall He says that it will have little impact on a day-to-day level and United are in a good position to cope with the financial consequences of the coronavirus crisis.

Tottenham Hostpur have announced their financial results for 2018/19 by means of a press release: Financial results Revenue was up from £380.7m in 2018 to £460.7m. Profit from operations, excluding football trading and before depreciation was £172.7m (2018: £162.5m). Revenue up significantly on back of Champions League progress so Spurs leapfrog over Chelsea and Arsenal to fourth in the income total.

Following the 'civil war' between majority shareholder Tahnoon Nimer and executive chairman Matt Southall there has been a further twist in the takeover saga at Charlton Athletic from controversial Belgian owner Roland Duchatelet. A legal challenge to ESI's takeover of Charlton by former directors is imminent. The South London Press has been told that at least some of the ex-directors are requesting that ESI’s takeover be voided as they did not consent to the sale and that the terms of their charges have been breached. If they are successful then it could see the takeover deal unpicked and Duchatelet being back responsible for the running of the Championship outfit. Read Richard Cawley's full story here: Fresh twist in takeover saga Doubts are growing about the ability of the South-East London club to survive this complicated crisis.

The Championship’s clubs are unanimous in the view that a means to finish the season must be found. Representatives from each of the division’s 24 clubs met via conference call on Tuesday to discuss the next steps following the suspension of the competition until 3 April. That date – as with everything at present – is subject to change given the inherent uncertainty of the pandemic. Indeed, it is unlikely to be fulfilled, although there has been talk of late April or early May. Even that may be optimistic. Clubs might have to play behind closed doors which would dent revenue streams.

Carlisle United hope that player sales will tide them over in the short term from the financial effects of the coronavirus crisis. United now appear to be relying on funds they have received for sales of players such as Jarrad Branthwaite, who joined Everton in January: Cash cushion from player sales However, chief executive Nigel Clibbens said: 'we are moving towards our vital season-ticket selling period for the 2020/21 season, and to the period where we secure new commercial deals. The cash from those activities is still absolutely critical to our finances over the summer closed season, and beyond – despite player sales.'

Networks of football clubs in shared ownership are a growing phenomenon. The best known is City Football Group which controls Manchester City alongside a global network of clubs. Red Bull Salzburg in Austria has substantial influence over RB Leipzig in Germany. Controversial Charlton Athletic owner Roland Duchatelet tried to construct his own network which ran from Spain to Hungary via England and Belgium. It has now been largely dismantled. The latest network is being constructed by Jim Ratcliffe, a reclusive 67-year old Briton who has made his money through his low profile petrochemicals company Ineos. He has an estimated fortune of £18bm. He has invested in a wide array of sporting assets from sailing to cycling (he is a Manchester United fan). All football clubs in a network benefit from shared scouting networks, data analysis teams and coaches. But at Ineos, each club could get an edge from experts in different sporting disciplines, such as nutritionists and physiotherapis...

Top Championship clubs are ready to sue the Premier League if they come up with an unsatisfactory solution to the curtailment of the season involving its cancelation and the denial of promotion. The clubs occupying the Championship promotion and play off places - Leeds, West Brom, Fulham, Brentford, Forest and Preston - held an emergency meeting yesterday. A follow up meeting by conference call involving all Championship clubs will be held today. The Championship top six want the season completed even if it means delaying the start of next season. They also want all promotion places protected in response to suggestions that Leeds and West Brom could be promoted with a 22 club Premier League next season. Promotion to the Premier League is worth about £200m to a club.

Fortunately, the Swiss Ramble has agreed to continue his in depth analyses of football club accounts during the current emergency. Cardiff City are the latest club to be the subject of his forensic analysis. The financial results for 2018/19 covered a season in the Premier League following promotion, but their stay in the top flight was brief, as it culminated in relegation to the Championship after they finished in 18th place. The Bluebirds swung from a £39m loss before tax in the Championship to £3m profit, thanks to revenue surging £90m from £35m to £125m, though competing in the Premier League increased expenses by £31m. Still reported £0.8m loss after tax, due to £3m tax charge. The £3m profit was not huge, though would have been £22m if £19.5m Sala provision excluded. In any case, this is still better than seven of the 13 Premier League clubs that have reported to date in 2018/19, as they have all made losses. Since Vincent Tan bought Cardiff City in May 2010, the club has ac...

Everton have secured a £200m naming rights deal for their new stadium at Bramley-Moore Dock with Russian billionaire Alisher Usmanov. The ten year deal would see the stadium branded with the name of his holding company, USM. He already has a naming rights deal on the training ground: Naming rights deal Everton are fortunate as clubs have not found it easy recently to secure naming rights deals for new stadiums as has been the case for Tottenham Hotspur and West Ham United.

Chesterfield FC income was down nearly £2m in first season in National League and losses £35,000 a week, reports Kieran Maguire of the PriceofFootball. Wage bill down 20% but not enough to match fall in income. Turnover was down from £5.9m to just under £4m. Chesterfield owner D E D Allen lent the club over £2 million since the end of 18/19 but has then written off the loan. He has committed to covering the losses.

FA chairman Greg Clarke has told the Premier League that he does not think the domestic season can be completed, reports The Times. Losses for the Premier League could amount to £750m or £375m per club. Broadcasters around the world pay £3bn for Premier League rights and £1.5bn to Uefa for the Champions League. The top performing English clubs earn around £70m from the Champions League. Sky and BT face pressure to offer subscribers refunds if matches are cancelled. If that happened, they would seek to recoup the cost from the Premier League. The losses are so great that playing matches behind closed doors could be a means of meeting television contracts at least in part. Manchester United, the biggest earners from gate receipts, would stand to lose £10m if their remaining matches did not take place. Arsenal, with four home matches left, would lose £10m. The losses would be influenced by how season ticket holders would be refunded, most likely a discount on next season. EFL te...

Liverpool will earn £30m less in Champions League money this season compared to the previous two campaigns after they lost to Atletico Madrid. The club banked about £70m from their run to the final in 2018 and a similar amount last year when they won the competition. Broadcast revenue pushed the figures up higher. This season's run has earned Liverpool £20.3m for progressing to the knockout phase, plus just under £10m in performance bonuses. With games postponed, possibly beyond early April, it is now uncertain when they will be able to claim the Premier League title.

Both the EFL and the Premier League are meeting this morning to consider their response to the Coronavirus crisis. Reports are circulating that the EFL may suspend matches for three weeks. In the Premier League, Arsenal and Chelsea will not be able to carry out their forthcoming fixtures. The expert view appears to be that transmission is relatively unlikely in a large outdoor gathering like a football match, although travel by public transport to the match could be an issue. Gatherings of more than 500 have been banned in Scotland from Monday because of the demands they place on emergency services. There has been concern that fans could gather outside stadiums where games were being played behind closed doors as happened at Paris Saint-Germain's Champions League game this week. It would be difficult to stop Liverpool fans congregating outside Anfield if their team was winning the title inside the stadium. La Liga postponed its competition yesterday after Real Madrid players ...

After $1,200,000,000 was written off the share value of Manchester United as part of Wall Street panic selling Ed Woodward and rest of the board announce the club is spending up to $35m buying back shares at the new low price but not from the Glazers, reports Kieran Maguire of the PriceofFootball. Maguire also notes: 'Juventus share price has more than halved in a month as panic selling continues, reducing value of club to below £700 million. Suspect David Gold and David Sullivan are regretting the £800 million offer they rejected for West Ham.'

Richard Cawley is highly respected as a football journalist in South London and has been following events at Charlton for many years. He thinks that the long-term viability of the club is now in question: Crazy week at Charlton Police were called to The Valley last night after controversial chairman Matt Southall attempted to suspend three long-serving and popular members of staff. After two hours, Southall left the building without any comment to a waiting journalist and locks and passwords were changed. The club is already under a transfer embargo and the EFL are considering further measures.

The EFL review of events leading to the expulsion of Bury FC argues that the financial fair play rules should be tightened to prevent owners subsidising wages out of their own pocket: Case for tightening rules Jonathan Taylor QC, who conducted the review, argues 'That means the club becomes entirely dependent on the owner remaining ready, willing and able to sustain that level of funding, and if the flow of funds is cut off, the club is immediately plunged into financial crisis.'

With Charlton Athletic in a state of civil war, those currently in control at The Valley have issued a new statement reaffirming support for Matt Southall as chairman. Southall met members of the Charlton Athletic Supporters Trust yesterday: Club statement The club is seeking legal advice in respect of further possible sanctions by the EFL. The Trust raised a number of issues in their meeting including substantial expenditure on a 'corporate' flat used by Mr Southall: Trust meeting CAST is calling on Southall to resign. 'After a lengthy meeting yesterday, we have no confidence in the future of Cafc under his leadership and lack of funding.' 65 per cent of Charlton Athletic Holdings Ltd belongs to a company controlled by Tahnoon Nimer, so the legal tangle may have to be resolved in the courts. On Talksport Nimer said: 'Mr Matt Southall is not right to be chairman, his priority is his lifestyle. He misuses the club for his lifestyle. It’s impossible to have a...

Benfica have recorded record first half profits of over €100m in 2019/20: Record profits Benfica’s strong financial showing was largely down to the sale of Portuguese forward João Félix to Spanish side Atletico Madrid, who paid €126 million (US$142.2 million) for the 20-year-old in July in what was one of the most expensive transfer deals ever. Clubs generally are relying more on player sales to balance the books. However, Benfica's operating profit improved away from player sales.

Every day the Swiss Ramble toils away in his Zurich fastness to provide an authoritative and informative analysis of a new set of football club accounts. The latest club to be so assessed is Aston Villa, one of the country's most historic clubs which has also sometimes punched below its weight. The Swiss Ramble reminds us that in July 2018 NSWE SCS, owned by billionaire businessmen Nassef Sawiris and Wes Edens, bought a controlling stake from Dr. Tony Xia after Vila “experienced significant liquidity problems”, including a missed tax payment to HMRC. Xia’s minority share bought out in August 2019. In 2018/19 Villa were promoted with the biggest ever loss in the Championship. The loss widened by £33m from £36m to £69m, as revenue dropped £14m (21%) to £54m and profit on player sales fell £5m from £16m to £11m. Operating expenses increased by £15m, while £46m promotion payments were offset by stadium sale £36m and HS2 land compensation £14m. Almost all clubs lose money in the ul...

A Coronavirus matchday shutdown could lead to financial disaster for League One and League Two clubs warns Kieran Maguire of the PriceofFootball: Financial disaster He points out that the clubs are very reliant on walk up revenue on match days. He suggests that Premier League clubs could give them financial assistance, but whether they would want to cross-subsidise other businesses more than they do already is a moot point.

Middlesbrough have released accounts which show the club made a pre-tax profit of £2m in the year to June 30, 2019. The club’s coffers were swelled by a £33m profit on player sales, as stars such Adama Traore and Ben Gibson departed. Middlesbrough had an operating loss of £30m in 2018/19 despite parachute payments. Boro total operating losses averaged £359,000 a week over the decade. The period covers the club’s unsuccessful promotion campaign last season under Tony Pulis. The accounts reflect the club’s bid to adjust to life outside the riches of the Premier League and stay within financial fair play rules. The profit contrasts with a £6.4m loss a year earlier. Boro also revealed it had recouped a another £4.4m since last June in further player transfers. The club’s revenues fell from £62m to £55.6m after a drop in income from broadcasting from £46m to £40m while gate receipts were down by £1m to £6m. However Boro’s costs remained steady at £51m as spending on wages fell. Kieran...

Tahnoon Nimer from Abu Dhabi has withdrawn his purchase of Charlton Athletic. The South-East London club may now go into administration and its future looks uncertain. Nimer has said that he discovered that the club's resources had been exploited in a wrong and immoral manner. 'I wish you all the best,' he told Charlton fans. A statement from the club had been anticipated, but its website is now undergoing 'essential maintenance'. Charlton executive chairman Matt Southall has issued a statement saying that no money was ever received from Nimer: Nimer pulls backing

Leading football finance expert, the tireless Swiss Ramble, turns his attention to the 2018/19 accounts of Leicester City. He notes, 'Despite the tragic loss of club chairman, Vichai Srivaddhanaprabha, in a helicopter accident in October 2018, Leicester City have made great progress since King Power International acquired the club in 2010 with “a renewed commitment to investing growing revenues back into the club"'. The Foxes went from £2m profit before tax to a £20m loss, even though revenue rose £20m (12%) to £178m and profit on player sales was up £20m to £58m, as costs grew £61m, due to investment in the squad and the 'transfer fee' for Brendan Rodgers. After tax, club posted a £17m loss. All three revenue streams were higher, but the majority of the £20m growth came from commercial, which rose £14m (65%) to £36m, due to sponsorship agreements. Broadcasting was up £4m (3%) to £128m, while gate receipts increased £2m (14%) to £15m. [WG: To me, making progres...

The Abu Dhabi interests behind the purchase of relegation threatened Championship club Charlton Athletic look poised to acquire Dinamo Bucharest. It appears it is Abu Dhabi Business Development, the private office of Sheikh Saeed bin Tahnou of which His Excellency Tahoon Nimer (who made a recent appearance at The Valley) is chairman that are behind the pursuit of buying into Dinamo. Nimer has been in Bucharest during the past week. Romanian investor Ionuţ Negoiţă, the majority shareholder of Dinamo, declared openly a few months ago that he was willing to sell the club for the symbolic sum RON 1. The Abu Dhabi royal family interests first expressed an interest in Dinamo in January. The purchase of Charlton is only partially complete with assets such as the land on which The Valley stands still owned by Roland Duchatelet. It is not known what relationship might be envisaged between the two clubs if the purchases are completed and whether Charlton with its strong Academy would b...

Southampton FC have been made available for sale less than three years after the Chinese businessman Gao Jisheng purchased a controlling stake in the club. The asking price is about £250m. Though that is reasonable for a Premier League club the economic downturn likely from coronavirus, and the fall in the oil price, may mean that purchasers will be slow to come forward. Former owner Katharina Liebherr, who inherited the club from her father, received a similar sum for 80 per cent of Southampton's shares in August 2017. Southampton's financial results for 2018/19 are not yet available, but are likely to be below the £28.6m profit made in the preceding financial year. The club would have made a big financial loss in 2017/18 if it had not been for the sale of Virgil van Dijk to Liverpool for £75m. Indeed, selling players on at a profit has been part of the club's financial strategy for some time. However, the club has also made expensive signings of players who have...

There are three leading experts on football finance. Dan Jones is the head of the Sports Business Group at Deloitte. He and his colleagues provide authoritative analyses of football finances, including an annual report on trends and the Deloitte Money League that ranks clubs by financial success with Real Madrid often coming out on top. The expertise and analytical ability of Jones and his colleagues is beyond doubt but, given their client base, they are necessarily looking at football from a corporate finance perspective. That said, someone needs to defend the Premier League. Many think that the highest standards in impartial analysis of football finance are set by the Swiss Rambler who tweets as @SwissRamble from Zurich. Kieron O’Connor has spent a lifetime in finance and is also multilingual. Hence, he is able to produce in depth analyses of football clubs from across Europe. I find the amount of detail he provides and the perceptiveness of his comments just stunning. Last...

City Football Group is considering adding to its global portfolio of clubs by acquiring French Ligue 2 side AS Nancy. Talks have taken place, but there has been no final decision. Nancy would be their ninth club: CFG looks at Nancy Nancy is the second largest city in Lorraine in North-Eastern France and the metropolitan area has a population of around 435,000, making it the 20th largest urban area in France.

Laurence Bassini has agreed a takeover deal to buy Oldham Athletic. Apparently it's with £6.2m minus the debenture payment paid to the club’s former owners by Abdallah Lemsagam today. No administration. All subject to EFL approval (which may take some time). Bassini is a controversial figure, indeed Kieran Maguire of the PriceofFootball has criticised him vigorously in terms which I cannot reproduce here. In 2013, Bassini was banned from any involvement in football for three years because of financial misconduct during his spell as Watford owner, which had ended a year earlier. He appeared in position to take over from Ken Anderson at Bolton, then a Championship club, towards the end of last season. However, the deal collapsed, with Wanderers claiming Bassini had failed to provide proof of funds by the club's deadline. Wanderers later went into administration and were close to liquidation when the Football Ventures consortium completed their takeover in August - although tha...

Does the Swiss Ramble spend every day hunched over a computer? Or does he ever get the chance to enjoy Zurich and Switzerland more generally? In any event the accounts of Liverpool FC for 2018/19 are the latest to be subjected to his forensic and authoritative analysis. He notes, 'success on the pitch, both domestically and in the Champions League, has driven significant revenue growth and profitability, which has enabled the club to make substantial investments in player recruitment and infrastructure in a bid to create a virtuous cycle.' Since FSG acquired the club, Liverpool have had £680m available cash: £492m from operations, £144m from owner loans and £44m from bank loans. £396m went on players (net), £203m capital expenditure, £38m stadium loan repayment and £25m interest payments. Commendably, the board invests almost all profits back into the club. [One must always avoid a domestic owners good, foreign owners bad narrative]. The inter-company loan is interest-fr...

Leicester City made a £20m loss in their 2018/19 financial year despite a substantial increase in turnover from £159m to £178m, reflecting a trend increase of 20 per cent a year: Foxes loss The increase in turnover was mainly driven by commercial revenues more than doubling from £14.2 million in 2018 to£29.9 million as Leicester continue to develop their brand and international reach. Securing a Champions League place this season will be key to further progress on and off the pitch.

This blog posts argues that La Liga has a sustainable funding formula for clubs that goes beyond financial fair play by placing a limit on the cost of a squad: Cost limits in La Liga It is claimed, 'La Liga's economic control is implemented by a group of analysts who review the finances of every club before establishing a squad cost limit. With this number, clubs go into the new transfer window knowing the total amount they can spend on first team players and top coaching staff. Funds can be divided between transfer fees or wages according to the club's preferences, as La Liga does not impose a wage cap.' The drawback of wage caps are subject to evasion unless one has a franchise system as in the MSL. The system does not seem to have prevented serious financial problems at Malaga, but there are special factors applying there.