Skip to main content

Financial pressures tighten on EFL clubs

Most EFL clubs regard themselves as being in a weaker financial position than in March when lockdown was imposed and Leagues One and Two were curtailed.  That allowed clubs to furlough most of their staff and take advantage of deferments on VAT and PAYE payments, as well as fees to the league.

Advances in payments from the EFL and solidarity payments from the Premier League also helped them to stay afloat.  The decision to end the League One season early saved Bristol Rovers around £500,000.

Over the past six weeks staff were redeployed in the expectation that substantial crowds would be returning from October 1st.   It was hoped that 30 per cent of stadium capacity could be used which would be near average attendances for some lower league clubs.  However, that hope is now very much in doubt.  If crowds were limited to 1,000, it would hardly offset the resultant increase in overheads.

Costs are ramping up again with HMRC looking for its deferred money along with the regular payments.  Money from the leagues, which would be arriving now, has already been allocated.

In the Championship, Sheffield Wednesday's income will drop by £500,000 a match without fans.  For Bristol Rovers with average gates of 8,000 the drop in income is about £150,000 per game.

A few clubs have had lucky windfalls.  Exeter City will get more than £3.5m from a sell on clause for Olliw Watkins who moved from Brentford to Aston Villa for a fee of £28m.   The money should see the Grecians through the winter and beyond.

Comments

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do