The Political Economy of Football V2

Villa’s lack of goals has felt like a surface-level issue for a team with many deficiencies. The league season is only five games old, yet the mood among squad and supporters alike is already weary. Players have spoken privately of feeling the pressure and, throughout the summer, eagerly awaited renewed impetus via the transfer market. The atmosphere around the training ground, already low, is expected to worsen this week. Internally, there is a flatness. Throughout last week, close observers speculated on the cause, but none could find the root issue.  It is a collection of everything, starting with last season’s final-day defeat at Manchester United, where Villa missed out on Champions League qualification on goal difference. Emery’s thousand-yard stare at the full-time whistle that afternoon — unlike here, he stuck around on the touchline to the end of the game — would be the mood of the summer around the club. The gambles to sign Marco Asensio and Marcus Rashfor...

Graham Potter’s days at West Ham look numbered with commentators naming Nuno Espirito Santo as the latest genius to save the sinking ship.  However, many think that the problems are more fundamental than the manager. It is not just Potter who is feeling the heat in east London. Before the defeat by Palace, hundreds of supporters protested against Sullivan and Brady, who were both present at the London Stadium on Saturday. They gathered on Marshgate Lane, outside the entrance for the team coach and club officials, and chanted, “David Sullivan, get out of our club”, “hands up if you hate the board” and “we’re not West Ham anymore”. The demonstration, which was organised by supporters group Hammers United, lasted roughly an hour and was designed to be the start of a series of co-ordinated protests against the club hierarchy. The group have also urged fans to boycott the home fixture against Brentford on October 20, which will be broadcast live on Sky Sports. “I knew it would b...

Tim Lewis will leave his position as the executive vice-chairman of Arsenal in what is a significant change at boardroom level for the club. Lewis was a supporter of Financial Fair Play in the Premier League and someone who advocated the blocking of takeovers linked to nation states. The 62-year-old corporate lawyer has advised Arsenal’s ownership group, Kroenke Sports & Entertainment (KSE) since 2007, then became a director at Arsenal in 2020 and was promoted three years later. Lewis forged a close relationship with the manager, Mikel Arteta, at the Emirates Stadium and was key to the new contract the Spaniard signed in 2023. He helped to lead Arsenal through the Covid-19 pandemic and had become a significant figure at Premier League level. The timing of Lewis’s departure is seen as a surprise given his involvement in their summer recruitment, along with Andrea Berta, the sporting director, and Arteta. He was key to the signing of Eberechi Eze from Crystal Pa...

The pressing issue of newly promoted Premier League teams being relegated immediately is expected to come under the spotlight at the top-flight clubs’ first meeting of the season next week when future financial rules are discussed. Ipswich Town, Southampton and Leicester City, who were promoted from the Championship in the 2023-24 campaign, were all relegated last season, the second successive year that has happened. There is a growing feeling that promoted clubs are not being helped by Profitability and Sustainability Rules (PSR) — and that the gap is widening. Newly promoted Sunderland and Leeds United will have maximum permitted PSR losses of £61million for this 2025-26 season as they have been in the EFL for the previous two years, while those who have been in the top flight will have a £105million limit. If the prevailing mood is to keep PSR next season — and there is unlikely to be a vote on that until the new year — then one idea doing the rounds is that promotion bonu...

The statement West Ham United released on Wednesday evening in response to the planned protest was supposed to reassure supporters, but it only fuelled their discontent. The club highlighted their financial investment in the squad and training facilities, the need for improvement and a “positive and productive” meeting with the fan advisory board (FAB) that vice-chair Karren Brady attended and where fan groups served their “vote of no confidence” letter. The statement was in response to supporters group Hammers United urging fans to protest against the owners before Saturday’s home Premier League game against Crystal Palace. They also want to boycott the next fixture at the London Stadium, against Brentford on October 20. Many feel the board have not taken any accountability for the club’s continued struggles. One fan told The Athletic : ‘Most fans are coming to the end of their tether. We’re heading towards the Championship. Fan fury made David Sullivan (the majority shareholder...

  Manchester United’s annual report for the 2024-25 season, published on Thursday evening, showed the club’s net transfer debt at the end of June was £344.5m — £73.4m and 27 per cent higher than when Ratcliffe and INEOS gained sporting control at Old Trafford. It is a huge sum and it does not even include United’s post-June transfer activity, when a further £92.1m net was spent. Transfer debt is on the rise across football, particularly in the Premier League, where the quantum of club spending outstrips the ability to pay it off in one swoop. Pushing payments into the future is also generally advantageous — provided inflation doesn’t hit or dip below zero, the money in your pocket now is more valuable than it will be in the future as purchasing power diminishes. Even so, United’s transfer debt is massive, sitting at 52 per cent of a revenue figure for which the club have already projected a £7m to £27m decline in 2025-26. The only Premier League clubs whose transfer debt to rev...

Given the size of Bradford as a city and the attendances they attract, the Bantams have punched below their weight for some time.  But now visitors to the city of culture are finding themselves 'pecked by the chickens'. A quick glance at the League One table says as much. Bradford sit second in English football’s third tier after eight games, behind leaders Cardiff City on goal difference. The two clubs meet on Saturday in south Wales. Next week also brings a trip to Newcastle United in the Carabao Cup third round and a reminder for the 5,000 travelling fans of the heady days around the turn of the millennium when the West Yorkshire side visited venues such as St James’ Park every other week in back-to-back years as a top-flight club. “Great times,” says Mike Harrison, editor of the long-running, award-winning City Gent fanzine. “I went to all 78 games, home and away, in those two seasons, as I suspected it might not happen again. We’ve been through a lot since then, but N...

Manchester United recorded the highest revenues in the club’s history last season despite not competing in the Champions League, yet still posted a sixth consecutive annual loss. The Old Trafford club’s 2024-25 financial results reveal that total revenues stood at £666.5m after significant increases in matchday and commercial income. Matchday takings rose to £160.3m — a record for an English team — and commercial income hit £333.3m, to offset declining broadcasting income from the failure to qualify for the Champions League. United nevertheless recorded a loss of £33m last season — down from a £113.2m in the previous year, but still representing their sixth straight year in the red.   And despite record turnover last season, United’s announcement details an expected drop in income this season, with revenue forecast at between £640m and £660m for 2025-26. United’s top line is expected to suffer from a first season without European football in over a decade. The projected drop ...

The joke used to be 25 years ago that any modern Subbuteo set required an accountant.   Today a VAR team needs to be added, but above all a team of lawyers. Burnley have brought an action against Everton for £50m in relation to their relegation from the Premier League a few years ago when Everton broke Profitability and Sustainability Rules:  https://toffeeweb.com/season/24-25/news/46685.html It's not something I like to see, but Burnley would no doubt argue it's worth a try.    If they do get compensated, I doubt whether it will be £50m.   Once again the growing band of sports lawyers will be the real winners.  If there is not an out of court settlement, the case could last for two months. Burnley were one of five clubs — also including Leeds United, Leicester City, Southampton and Nottingham Forest — who had indicated earlier in the process that they would consider legal action should Everton’s breach be confirmed. Burnley will argue...

The nine English clubs involved in European competition — Arsenal, Aston Villa, Chelsea, Crystal Palace, Liverpool, Manchester City, Newcastle United, Nottingham Forest and Tottenham Hotspur — must each abide by a different set of financial strictures to their remaining 11 domestic peers this season. Some fans see these rules as a mechanism to protect existing top clubs from challengers.   Financial penalties can be treated as a cost of business by wealthy clubs.   Only points deductions or exclusion from a competition would really hit them. UEFA’s football earnings rule limits clubs to €60million (£51.9m at today’s rate) in losses over a three-year period, albeit that limit can be upped by €10m per year (to a maximum total of €90m across a given assessment period) if clubs meet each of four conditions UEFA deem representative of good financial health. They are: positive equity; a quick ratio — current assets, less stock, divided by current liabilities — of one or above; a...

The authoritative Swiss Ramble takes a look at the money clubs receive from Uefa competitions even before they have started playing.   There are many factors to consider and the Zurich-based Substack writer has the data to address them.   The message that emerges is once again ‘to them that hath shall be given.’   Of course, arguably the funding was tweaked as one way of discouraging the formation of a Super League. The country that is guaranteed most money from the Champions League this season is England with €326m, followed by the other four members of the “Big Five” leagues, namely Spain €243m, Germany €216m, Italy €180m and France €149m.   There is then a big gap to the Netherlands €75m and Portugal €74m, with the rest of the top ten being made up of Belgium €59m, Greece €32m and Norway €31m. Crystal Palace could earn €22m (£19m) if they manage to win the Conference League, which would be around half of the Europa League.   This is scant c...

What does one do with the site of an old stadium when a club moves to a new one?  Very often the stadium is demolished and houses or a commercial development takes its place with perhaps a commemorative plaque or a street named after the ground.  The trajectory at Everton has been different. Today Everton Women play their first game at Goodison Park since it became their permanent home, and the famous stadium symbolises their exciting yet uncertain future. Goodison has transformed since Everton’s men side departed last May. Banners dedicated to Everton Women adorn the Bullens Road stand. The tunnel has pink-tinted wallpaper featuring phrases such as “A New Era” and “A History We Own”. Around the venue, displays referencing Everton Women’s past, present and future are conspicuous. However, the stadium is unfinished. Thousands of seats are missing, with the upper tier of the Goodison Road Stand stripped to the bone. Everton are acutely aware that the 133-year-old ground ha...

Inverness Caledonian Thistle have left administration thanks to businessman Alan Savage.  He has lots of novel ideas for boosting revenues, although having a petrol station at the ground is a new on me:  https://www.bbc.co.uk/news/articles/cp98y1n8mkko

It’s a big weekend for FC Barcelona, as the Catalan club readies for its first home game of the new football season. The bad news is that the match won’t take place at Camp Nou. The €1.5bn renovation of one of football’s most famous venues drags on, with the city council recently rejecting Barca’s request to host Valencia and 27,000 fans in the middle of a building site. Instead, the game will take place at Estadi Johan Cruyff, a pocket-sized ground on the outskirts of town. It is normally home to the Barcelona women’s team, and has capacity for just 6,000 people. The revamped Camp Nou, when finished, will hold 105,000. The club will only allow the 16,151 people who held season tickets during the two seasons spent at Barcelona’s Olympic Stadium to buy tickets, and if demand exceeds supply there will be a lottery. For a club that so sorely needs cash, the prospect of playing more home games in front of tiny crowds is a disaster. There may be scope to move back to the Ol...

WhyA 94-word statement released by the English Football Association on Thursday has cast a cloud over Chelsea.  The news that the club had been hit with 74 charges relating to alleged breaches of rules on agent payments did not come as a surprise to club executives, given the issue has been hanging over them since 2022, but it has sparked concern among supporters. The 74 charges are related to alleged breaches of FA rules regarding regulations on working with intermediaries and third-party investment in players.   The alleged offences took place between 2009 and 2022, although the focus is on what took place from the 2010-11 to 2015-16 seasons. Chelsea say the offences are all related to the regime of the club’s previous owner, the Russian oligarch Roman Abramovich, although the FA declined to confirm that point when asked about it by  The Athletic . Chelsea also say that they flagged the discrepancies to all the governing bodies — the FA, the Premier...

Millwall finished a highly creditable 8th last season, just two points outside the Championship play-off places, which represented a decent improvement on the previous year.  The club’s ability to punch above its weight should no longer be a major surprise, given that Millwall have finished in the top ten on no fewer than five occasions since they were promoted from League One in 2016/17. The Lions seem to be firmly established in England’s second tier, having competed in the Championship in 14 of the last 16 seasons, which is pretty good, given their financial disadvantages, compared to the rest of the division. Unfortunately, the most recent available accounts are from the 2023/24 season, so these are a full year out of date, but the conclusions should still be clear. Millwall’s pre-tax loss significantly widened from (restated) £12.0m to £19.1m, despite revenue rising by £2.0m (11%) from £19.4m to a club record £21.4m. The deterioration in the bottom line was largely bec...

Globalisation may be coming to a halt as Trump's tariffs take effect (although even here the picture is more complex than it seems on the surface).  However, in football the geopolitical forces are, if anything, gathering strength.   Their focus may have changed, but they are affecting the game. European football’s summer transfer laid bare the widening gulf between the English Premier League and everybody else. English clubs, boosted by new overseas TV deals, spent more than those in Spain, Italy, France and Germany combined. Those leagues aren’t sitting on their hands — all of them are trying to come up with ways to get international football fans interested, in the hope that one day that feeds through to more TV and sponsorship money. One idea is to ape the NFL’s international series by taking league matches overseas. Summer tours have been going on for years, and both the Italian and Spanish “super cups” are currently staged in Saudi Arabia. Bu...

Six months ago, no Tottenham Hotspur fan, unless they had a particular interest in wealth management, would be able to tell you who Peter Charrington was.  But after a dramatic week, Charrington is the name on everyone’s lips. On Thursday afternoon, he stepped into the role of non-executive chairman. It was the start of a new era at Spurs. Charrington himself has been learning the ropes of the football industry over the last six months, especially since Venkatesham arrived. Charrington’s background is not in sport but in private banking. He spent 26 years at Citibank and made his name at Citi Private Bank, which manages the money of high-net-worth individuals. He ran its operations in the UK and North America before becoming Citi Private Bank’s global head from 2014 to 2020. He won ‘Best Leader in Private Banking’ at the 2019 Global Private Banking Awards. It was not just Charrington’s professional expertise that led him to Spurs, but also his relationship with the Lewis family...

West Ham United have offered to meet groups of supporters who are planning to boycott two home fixtures and stage a protest outside the London Stadium before each game. The fans issued a vote of no confidence in the board and blamed the club for not putting in place better scouting and recruitment departments, as well as training facilities. The impact of the lack of investment, the supporters claimed, threatens the team’s chances of staying in the Premier League. The groups have called on supporters to protest against the club’s owners before the matches against Crystal Palace on September 20 and Brentford on October 20 and boycott the fixtures, which will be broadcast live on Sky Sports at 8pm. Some members of these groups of supporters also sit on the fan advisory board, which regularly meets the club to discuss off-the-pitch issues that affect supporters. An open letter to the board read: “We trust you’ll understand current circumstances threaten our existence as a top-flight...

The story of Tottenham Hotspur in the 21st century has been the story of the relationship between Daniel Levy, the long-standing chairman, and the Lewis family, the majority shareholders. Levy started working for Joe Lewis as a young man in the 1990s, was widely thought of as Lewis’ protegee, and became the managing director of ENIC, the investment firm who bought 29.9 per cent of Tottenham from Alan Sugar in December 2000 for £22million. Levy became chairman in 2001 and, for 24 years, he ran Tottenham with a firm grip, as the club grew into a huge global brand, valued at roughly £4billion ($5.4bn), playing in one of the best new stadiums in Europe. The Lewis family were content to stay in the background, as Levy became the public face of the club. Levy was not just one of the longest-serving Premier League chairmen of the modern era. He was also one of the most dominant, across everything that happened in his club with ferocious attention to detail. As much of a shock as Thursda...

Daniel Levy, one of the top power brokers in England’s Premier League for decades, has stepped down as executive chair of Tottenham Hotspur, the north London football club announced on Thursday. Levy oversaw the construction of a £1.2bn, 62,850 seat stadium that has transformed Spurs into one of the biggest revenue makers in global football. Spurs generated about €615mn in revenue 2023-24, placing them ninth in the worldwide rankings of football clubs compiled by Deloitte, the consulting firm. Levy’s departure is part of a broader leadership shake-up at Spurs, but the club said there were “no changes” to its ownership or shareholder structure. Spurs’ majority shareholder is Enic Sports, an entity that was controlled by Bahamas-based billionaire Joe Lewis. Peter Charrington, former global head of Citi Private Bank and an Enic director, has been named non-executive chair of the club following Levy’s exit. Spurs, which last season won the Europa League, the second tier trophy in Eur...

In August 2018, having been co-owners since 2007, Stan Kroenke bought Russian billionaire Alisher Usmanov’s 30 per cent shareholding for over £600m, ending a long power struggle for ultimate control of the club and taking his total stake to 97 per cent.  The American billionaire also bought out the remaining independent shareholders, taking the total cost of the transaction north of £600m, of which more than £550m was borrowed from Deutsche Bank. The Kroenkes have just authorised another summer of significant spending.   Almost £250million was spent, including the marquee signings of striker Viktor Gyokeres from Sporting CP for £54.8m and midfielder Martin Zubimendi from Real Sociedad for £55.8m. There was also a deal worth up to £67.5m for Eberechi Eze from Crystal Palace, with Josh in London playing a key role in the transfer. Since KSE’s 2018 buyout there has been an evident shift in Arsenal’s approach to transfers. Between 2018-19 and 2023-24, Arsenal had a gross spend...

Now that the dust has settled from the transfer window it is worth looking at the pattern of spending courtesy of the authoritative Swiss Ramble.  These are just highlights: for comprehensive coverage subscribe to his Substack blog which covers all the European leagues including minor ones. Liverpool’s £459m spend in the transfer window was the third highest of all time, only surpassed by Chelsea’s massive spending since Boehly and co arrived (£745m in 2022/23 and £553m in 2023/24). Liverpool had the highest gross spend of £393m, followed by Chelsea £284m and Arsenal £254m, though six clubs in total spent more than £200m.   The three promoted clubs all spent a fair amount, led by Sunderland’s £163m, though Burnley £117m and Leeds United £98m did not exactly hold back either. The lowest gross spend of the Big Six was Manchester City’s £179m, though this was partly because they were very active in the previous January window. On the other hand, three clubs spent less than £5...

Following the loss of their legal battle with Nottingham Forest, the hapless Football Association now faces the prospect of legal action by West Ham United.    Lucas Paquetá and West Ham United are considering legal action against the FA for damages over his collapsed move to Manchester City that could run to tens of millions of pounds after the Brazilian midfielder was cleared of spot-fixing charges. There is an expectation that Paqueta’s legal team will pursue their client’s legal costs due to what they believe to be a flawed investigation. That could amount to a seven-figure sum. The 28-year-old was cleared of four charges last month, and the publication of the full judgment reveals that the panel found aspects of the FA’s case against the player “surprising” and “concerning”. The judgment also reveals that Paquetá’s KC, Nick De Marco, made a statement to the FA in September 2023 during the investigation into the Brazilian, saying that leaks of the FA’s investigation “l...