Skip to main content

Why do solid mid-table clubs eventually fail?

The New York Times has taken an in depth and interesting look at why apparently solid mid-table clubs like Wolves eventually fall out of the Premier League.

My view is that they tell half the story.  Statistical analysis shows that there is a strong correlation between spend on players and success.   You can fit a reasonable linear two variable regression lin to the data.

Of course, there are outliers, clubs that punch below or above their weight: at the moment, Brentford on the positive side and Tottenham Hotspur on the downside.

However, I think the Premier League is essentially an oligopoly, i.e., competition is controlled for the benefit of a few producers.   The big six or maybe seven ensure that they remain at the top financially and in other terms.   Insurgents are tolerated to an extent because they make the competition look more competitive than it actually is, but are eventually sent packing.

In 2018, Stoke City and West Bromwich Albion both dropped into the Championship after 10 and eight years respectively of top-flight football. In 2023, Southampton’s 11-year stint came to an end, while Leicester City went down after eight seasons that included the most remarkable title triumph in Premier League history.

Charlton’s seven-year spell in the top division ended in 2007, and they have not been back since.* West Bromwich Albion, Leicester and Southampton have all returned for a single season in the top division in subsequent years, but their previous stories are typical of a host of clubs that have tried to narrow the gap to the division’s elite.

A pattern is clear.  Clubs who win promotion and survive their first season often solidify their Premier League status for a while. Sometimes they exceed expectations for a season or two, or even more. But, eventually, they succumb to the pressures of the division and slip back from whence they came.

Swansea City (Abertawe)

Swansea City are another of the 51 clubs to have played in the Premier League since its launch in 1992.   They climbed from the bottom tier of English league football to spend seven years in the top flight, achieving one top-half finish, a season in the Europa League and a League Cup win at Wembley 2013. In that time, they also basked in the unlikely presence of Denmark legend Michael Laudrup as manager and the crowning of heroes, including Spanish forward Michu.

But they have not returned since sliding out of the division in 2018 — a fate that former chairman Huw Jenkins believes was down as much to a shift in mentality as to any business or tactical decisions.

“For us, it was about sticking to our principles. We wanted to go out and be positive, trying to win games, and they didn’t change just because we were playing the supposed bigger teams.

“But the better we did, the more it became a mindset that we didn’t want to struggle and we needed to maintain what we had, and once that happens it becomes much much harder to get wins on the board and things change from that point.”

The formula for success in the Premier League for mid-sized clubs is complicated.  In commercial terms, growing revenue can help clubs invest in better players within the Premier League’s financial guidelines. But increasing matchday income can be difficult given that most clubs have a natural ceiling when it comes to the size of their fanbase — and it will be lower than that of Manchester United, Liverpool and the traditional heavyweights of the English game.

Broadcast revenue remains the biggest single source of income for Premier League clubs — a fact that explains the general fear of relegation and the loss of the hugely lucrative broadcast deals from which funds are split between the 20 top-flight clubs.  For most clubs, broadcast revenue equates to between 70 and 90 per cent of their overall turnover, with those with a lesser reliance on TV money regarded as more solid, sustainable businesses.

The Brentford story has been built on principles of stability and forward planning. Chairman Matthew Benham and director of football Phil Giles have been in place for more than a decade, while technical director Lee Dykes joined in 2019.  They plan three transfer windows ahead, try to add fresh voices to the senior management team regularly, attempt to raise player wages gradually and drive hard bargains when selling players.

*As a Charlton fan, I think that then chairman Richard Murray made a big mistake in not letting Alan Cutbishley see out the last year of his contract while they conducted a proper successor search rather than falling for the blandishments of Iain Dowie.

 

 

 

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...