Skip to main content

Response to Brentford boss on football regulator

 Greg Campbell has hit back at a recent article in the Financial Times by Brentford’s Cliff Crown on the subject of the proposed football regulator.  Campbell is a partner in Campbell Tickell, a management consultancy.   He has written a code of governance for football clubs.

‘I was interested to read the opinion piece from Cliff Crown, chair of Brentford Football Club (“Regulation must not stop football clubs that dare to dream”, Pink ‘Un, February 4). However I believe there is more to the story.

While Brentford’s recent track record is impressive, parachute payments (to clubs relegated from the Premiership to the Championship) create a yo-yo effect instead of promoting competition. Clubs like Southampton, Leicester, Burnley, Sheffield United, Norwich, Ipswich, West Brom and not many others continually bounce up and down between the Premiership and the Championship. The parachute payments system distorts competition and makes it very hard for others to break through.

Plus the financing and funding model of English men’s football is broken: the Premier League’s broadcasting deal brings in £3.19bn a year. How is that money distributed? The football campaign group Fair Game calculates that for every £1,000 from the deal, around £880 goes to Premier League clubs; just over £70 to Championship clubs in receipt of parachute payments and around £33 to Championship clubs not in receipt of parachute payments.

The report concludes: “This falls to £6.22 for League One clubs, and £4.15 for League Two clubs. National League clubs get 58p while it drops to just 15p for National League North and South clubs.” Nearly every club in the Championship now spends more money on players’ wages than it receives in revenue.

And the vast majority of clubs rely on an owner-benefactor just to survive: 58 per cent of clubs in the top 92 (ie the Premier League, the Championship, and Leagues One and Two) are now technically insolvent. What we see in football — but especially the men’s game — is the effective result of self-regulation, ie no proper regulation at all.

So I see Crown’s article as essentially being about supporting the Premier League’s last-ditch efforts to get the football governance bill watered down, in the Premiership’s own interests rather than those of the sport, of fans and local communities

Comments

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...