The Political Economy of Football V2

I confidently predicted that the real beneficiaries from Spygate would be sports lawyers and that looks like being the case.  Given the reputational damage they have already suffered, the club has wisely decided not to take the matter to judicial review, even though they might have grounds for doing so.  It would have been better if they had made a full admission more quickly. Southampton players are exploring their options regarding legal action against the club. Tonda Eckert’s squad had largely been kept away from the affair and only had the basic details communicated to them by the club. The players were furious at the EFL verdict, having only found out at the same time as everyone else, with members of the squad who had taken 40 per cent pay cuts after suffering relegation from the top flight year were due to have that reinstated in the event of promotion to the Premier League. They are due to meet with the club on Wednesday, and sources with knowledge of the players...

Newcastle United’s owners are open to selling a minority stake in the club in order to help fund significant infrastructure projects, including a potential replacement for St James’ Park and a purpose-built training ground. People familiar with the matter have told  The Athletic  that Saudi Arabia’s Public Investment Fund (PIF) retain a long-term commitment to Newcastle, the club they bought from Mike Ashley for £305million in 2021.  Nevertheless, they are willing to dilute their current 85 per cent shareholding and have been approached by possible investors. The British Reuben family own the other 15 per cent of Newcastle. David Hopkinson, Newcastle’s chief executive, has been pushing to end the sense of stasis regarding the club’s stadium plans and training facilities, both of which have become a source of frustration. St James’ is routinely sold-out but is in need of refurbishment, while Eddie Howe’s first-team squad continue to train in an environment which is mor...

Southampton have been kicked out of the Championship play-off final, known as the richest game in football due to the financial rewards from winning it, after the club was found to have broken league rules by spying on opponents’ training sessions.  The English Football League, which runs the second, third and fourth tiers of professional men’s football, said on Tuesday that an independent disciplinary commission had decided to expel Southampton from the play-off final, due to take place on Saturday. It added Southampton had “admitted to multiple breaches of EFL Regulations related to the unauthorised filming of other clubs’ training”. Southampton will also receive a four-point deduction for next season. Southampton had been hoping to bounce back to the Premier League after being relegated last year. The south coast club is majority owned by its chair, Serbian billionaire Dragan Šolak. The club still has tickets for the Championship play-off final advertised for sale on its web...

Tottenham Hotspur will travel across London on Tuesday night for one of the most financially consequential games in football history. Victory against rivals Chelsea would see Spurs take a big step towards maintaining their place in the Premier League after the club’s worst season in more than 50 years. Defeat would leave the door open to relegation and a potential drop in revenue of up to £270mn next year alone. Spurs’ plight belies its longstanding reputation as one of the game’s most shrewdly run clubs under former executive chair Daniel Levy, who was ousted last year by majority owners the Lewis family. Over the course of his 25-year tenure, Levy garnered a reputation for overseeing a lean, frugal operation — former Manchester United manager Sir Alex Ferguson once said that negotiating with him was more painful than his hip replacement. But his latter years were characterised by wasteful spending on players and worsening performances on the pitch. The spectre of relegation is pr...

Does Milan’s San Siro need to be demolished?   Edwin Heathcote reviews the evidence from an architectural perspective in the Financial Times. Milan’s San Siro stadium is one of football’s great spectacles. Part of it is the atmosphere during a game, especially one of the Madonnina matches, the fierce derbies between the two teams that call the stadium home, AC Milan and Inter. But it is also the incredible sight of the architecture after a match, when the fans descending the huge concrete circulation cylinders create the dizzying impression of a building swirling around them, as if the whole structure is spinning in response.  The Madonnina is named after the gilded statue of the Virgin that stands atop Milan’s Duomo. The San Siro is far bigger than even that huge gothic cathedral and, together with La Scala opera house, the three constitute a kind of trinity of revered Milanese monuments. Unlike the other two, however, the San Siro looks likely to be demolished....

Having lived in the Midlands for over 50 years, I regard Aston Villa as the leading regional club, a status that has gone from aspiration to fulfillment.  My chiropodist is a keen season ticket holder so we always discuss the club’s progress. Here I rely on the latest assessment by the Swiss Ramble of the club’s 2024/25 accounts.   He has an unrivalled data set and forensic financial skills which he applies from his Zurich base.    Read more on his Substack page. This has the makings of another fine season for Aston Villa, as they on course for fourth place in the Premier League, while they have guaranteed their qualification for the Champions League. In addition, they could get their hands on some silverware by winning the Europa League, as they are favourites to beat German side Freiburg in this week’s final in Istanbul. It bears remembering how far Villa have progressed under owners Nassef Sawiris and Wes Edens, who bought the club in July 2018.  ...

  From his Zurich fastness, the Swiss Ramble casts his forensic eye over Watford's finances.  More analysis and detail is available on his Substack page. Watford swung from a £12.8m pre-tax profit to a £16.0m loss in   2024/25, a decline of £28.8m in the bottom line, mainly due to a significant reduction in revenue, which more than halved, falling £31.6m from £57.6m to £26.0m. This was exacerbated by lower profit on player sales, which dropped £13.5m (46%) from £29.3m to £15.8m. This was partially compensated by a £14.5m (21%) decrease in operating expenses from £68.9m to £54.4m, as the club “implemented several cost saving initiatives and made efficiencies across the business”, while net interest payable fell by a third from £5.2m to £3.5m. Watford’s loss follows two years when they posted profits, adding up to an impressive £37m.   In fact, they have managed to make money on five occasions in the last decade, which is not too shabby in the crazy world of foot...

Football finance guru Kieran Maguire reckons that Rotherham United are one of the best run clubs in the EFL, but they will nevertheless be hit hard by relegation to League Two,  It's only recently that they were in te Championship and the financial gap between the two divisions has become wider:  https://www.rotherhamadvertiser.co.uk/sport/football/rotherham-united/words-of-caution-for-rotherham-united-from-one-of-footballs-top-finance-voices-8545580

Hull City could be the losers from the 'Spygate' crisis and the lawyers could be the winners. If the EFL decides that Southampton can stay in the play off final, Boro are likely to sue given the sums that are at stake.  And if the EFL removes them, the Saints will call in their lawyers. Meanwhile Hull City do not know who they are going to face and when they will face them.   This makes it particularly difficult for their disabled supporters who need to book transport and accommodation. One thing that surprised me is how open Boro's training ground is.   I live near Coventry City's training ground and once they started to be a serious club again, big screens were erected.

Problems on the pitch and in the dressing room in Madrid are feeding into the boardroom. This week Florentino Pérez, the club’s all-powerful president,  said  he would call an election, even though his current term runs for another three years. He vowed not to resign, and lashed out at his various critics, who he blamed for trying to destabilise the club. “Why do they want to get rid of me? Just because a few people are saying they want to stand for election? Let them stand”, he said. It’s not that long ago that Pérez was touting his plan to reorganise Real Madrid in order to raise money from investors. The idea was to allow an outside party — perhaps a private equity firm — to buy a stake of 5 to 10 per cent. The proposal is controversial, to say the least, for a club owned by its 100,000 members. The Spanish club has the highest revenue in football, at more than €1bn a year. Sportico reckons the club is worth $7.7bn; Football Benchmark has a slightly lower figure of aro...

  Daniel Levy’s sudden dismissal last September put the Lewis family in the spotlight like never before. Without Levy there to run the club and act as the lightning rod for criticism, more questions have been asked of the Lewis family regarding their long-term plans. Throughout, the Lewis family have been very clear that they do not want to sell up.  A consortium did express interest last September , which led to a source close to the Lewis family dismissing it as “unsolicited and unnecessary interest”. But whatever happens over the last two games of this season, the question of the Lewis family’s long-term intentions for Tottenham Hotspur won’t go away for long. Especially with fans aghast at the struggles of the club this season, facing the fear of their first relegation for 50 years. The Lewis family’s position, that the club is not for sale, is steadfast, regardless of which division Spurs are playing in next season. There is another potential factor regarding the ownershi...

Arsenal fans are facing a 10-fold increase in flight and hotel costs to travel to Budapest for the club’s first Champions League final in 20 years. The Gunners, who beat Atlético Madrid earlier this week, will now take on defending champions Paris Saint-Germain on May 30 in a match to crown the best team in Europe. Declan Rice, who captained the team during the winning match, called for 200,000 fans to support the team in the Hungarian capital, a number that far exceeds the 61,400 capacity set for the game at the Puskás Aréna, which will host Uefa’s flagship event. Airline prices to fly the day before the game from London to Budapest on Wizz Air have reached as high as £650, more than 10 times the fare normally offered by the Hungarian budget carrier. Wizz Air has promised to double capacity ahead of the event, operating eight flights from Luton and Gatwick on May 29 and another six on May 30.  Outbound Wizz Air flights shot up to £646.99 earlier this week, according to prici...

 Aston Villa’s ownership group, V Sports, are advancing in talks to acquire a controlling stake in French second-division club, FC Annecy.  Villa were leaning on the V Sports group, led by Wes Edens and Nassef Sawiris, to integrate Annecy into its multi-club umbrella, which included Japanese club Vissel Kobe and Real Union of Spain. V Sports’ director of global football development, Matthew Kidson, was tasked with connecting the clubs together, even if the partnership, at the time, was informal. However, V Sports is closing in on acquiring a controlling stake in Annecy, having held discussions and intending to finalise the agreement in recent months. V Sports have also been looking at other clubs in Europe. A formal investment would help to accelerate plans with Villa and other clubs in its stable. This will include a continuation of young Villa players moving to France, either on loan or permanently, plus improvements to Annecy’s facilities and possibly its 15,600-capac...

Fulham announced that season ticket prices would be going up at Craven Cottage yet again – a move which Fulham Supporters Trust (FST) says places an “undue burden on loyal fans”. The Premier League club will impose an above inflation 3.5% hike on season ticket prices for the 2026-2027 campaign, the fourth consecutive season of price increases at Fulham.  [Inflation is now likely to be above 3.5 per cent given events in the Middle East]. “The claim that the increase in season ticket prices is required for the club’s sustainability or compliance with new financial regulation simply does not stand up to scrutiny,” FST said.    Matchday receipts account for less than 10% of total revenue and that share is falling. A price hike will have no material impact on the Club’s bottom line, which makes raising ticket prices a choice, not a necessity.” “Today’s decision to apply a uniform price increase affecting these stands will regrettably contribute to the sense of di...

This is the first time that all three European finals have included an English side. Is it, perhaps, a cause for concern? Probably not when it comes to the Champions League. Financially, top European clubs are on a par with their English counterparts. In fact, only one Premier League side featured in the top five of the latest Deloitte Money League table. But in the second- and third-tier competitions, designed to broaden access to European football (and the associated cash boost from Uefa), worries may be creeping in. Uefa’s relatively new financial rules restrict spending as a percentage of income. Even smaller top-tier English clubs have far higher revenue than their continental counterparts, giving them a big financial advantage in both the Europa League and the Europa Conference (both of which were won by English teams last year). For example, Aston Villa had revenue last season of £378mn (€431mn). Their fellow finalists SC Freiburg had just €163mn. If these compe...

The structure of Swindon Town's finances have been simplified with 'all roads leading back to the owner.' Some of the financial instruments used, notably debentures, have concerned supporters.  At the end of the day, the club is now more reliant on the owner's goodwill:  https://www.swindon24.co.uk/sport/swindon-town-restructure-finances-as-owner-consolidates-debt-and-control/

Liverpool have revised plans to increase ticket prices following protests and lengthy discussions with the club’s supporters’ board. In March, the club announced a three per cent rise for next season with further inflation-linked increases to follow in 2027-28 and 2028-29.    Given that inflation is now expected to be more than three per cent, this is a cut in real terms.   All clubs have found ‘other expenses’ increasing rapidly, especially utility bills but also national insurance. Yet after a strong backlash, particularly at recent games, Liverpool have on Thursday confirmed a compromise.   While the three per cent inflation-based rise for general admission next season will remain, there will now be a freeze on prices for the 2027-28 season. Liverpool Supporters Board say they “welcome the decision” and will now work closely with the club on a new proposal, including alternative ways to generate revenue to avoid future price increases. A statement fro...

For over a century, Bromley was the definition of a “local” club. They were staples of the Athenian and Isthmian leagues, originally ‘amateur’ leagues.  As an amateur club, they won the first FA Amateur Cup to be staged at Wembley in 1949. Even when they became semi-professional, those were the types of divisions where the tea is hot, the terraces are concrete, and the players often have day jobs.    Now after 132 years in the shadows of London’s giants*, the Ravens have been promoted as champions to League One. The turning point wasn’t a sudden influx of oil money, but a slow build-up of professionalism and stability.   Owner Robin Stanton-Gleaves, who made his money in the printing and technology sectors, became majority shareholder and chairman in 2019. Since then, they have secured two promotions as well as winning the FA Trophy against Wrexham in 2022. The Club’s transformation is a tale of having a clear identity, with strategic ownership, smart recruit...

When I started watching football in 1953, the visit of Wolves to The Valley was very much to be feared.  With Billy Wright as captain, they were one of the country's top clubs.   There have been many ups and downs since then, but I cherished my occasional lunches with a lifelong supporter who sadly eventually passed away at an advanced age. It doesn't take a genius to work out what has gone wrong recently, but the Swiss Ramble provides a forensic analysis of what has gone wrong using the 2024/25 accounts and his own extensive and unrivaled data set, more can be found on Substack.   Some highlights below. Last night I was watching the gripping conclusion to the world snooker final from Sheffield.  When the young Chinese challenger won, the representative of the equivalent sporting body from China made sure that he was wrapped in the Chinese flag for all the photos.   No doubt the sporting body is approved by the Communist Party. I have only been to...

A consortium led by U.S. businessman David Storch has completed a takeover of Sheffield Wednesday, who are now out of administration and will start next season in League One without a 15-point deduction. The new owners were confirmed ahead of Wednesday hosting West Bromwich Albion on the final day of the Championship season at a sold-out Hillsborough. The hosts won the game 2-1, just their second league victory of the season, to take them back to zero points after two separate deductions totalling 18 points. According to the English Football League (EFL)’s insolvency rules, clubs that fail to exit administration without paying all creditors at least 25 per cent of what they are owed, usually receive a 15-point penalty. The EFL’s board, however, has the power to waive this sanction, and the Storch consortium made it very clear to the league that it would not proceed with the takeover unless the board agreed to exercise this discretion. So, the deduction has been suspended, subje...

This informative article points out that promotion to League One would actually worsen the finances of Swindon Town.  Clubs in that league make an average loss of £5m.  A play off run (now unlikely) would bring £1m to the Wiltshire club, but that is much less than current losses:  https://www.swindonadvertiser.co.uk/sport/26067738.league-one-promotion-impact-swindon-town-finances/ It's a brave man who buys a lower league EFL club.

Southend United boosted their revenue last year through the play off final but still ended up with a £1m+ loss.  Finances are forecast to deteriorate this year with the Shrimpers failing in the difficult task of escaping the National League while overheads will increase (as the case at almost all football clubs, ndeed utilities may cost even more because of the conflict in the Middle East:  https://www.bbc.co.uk/news/articles/c4gvzm9vqyro

Is he a semi-detached owner, asks the New York Times? It is coming up to a year since Henry last watched a Liverpool game in the flesh. Henry is 76, so regular transatlantic flights are perhaps more challenging. But throughout FSG’s 16-year tenure, the pattern has largely stayed the same, with Henry only visiting Anfield once or twice a season. There was a reason fans chose a picture of Henry with his fingers in his ears to display on Saturday — his lack of engagement means chief executive officer Billy Hogan effectively acts as his representative on earth, a conduit between the levels of management below him and the tier of ownership above. Hogan has left a generally good impression on supporters who have worked with him in the past due to his responsiveness. Senior executives elsewhere in football have formed the view that FSG rate him extremely highly, but it is also very clear he is there to do a job for them. Though he is viewed as intelligent and well-mannered, he alway...

When the Premier League was formed Everton was closely involved in the discussions as it was seen one of the country’s top clubs.  Since then, it has had some challenging times on and off the pitch, but a brighter future now beckons.   Sad to say, my old friend and lifelong Bill Tupman is not here to see it. From his Zurich fastness, the Swiss Ramble has reviewed the 2024/25 accounts which cover the last season at Goodison.    Here are some highlights: much more data and in depth analysis of his Substack page. Ownership change Friedkin purchased Moshiri’s 94.1% holding, then converted the £451m shareholder loan into equity, raising the stake to 97.2%, while finally making an additional equity injection to repay third party debt and satisfy working capital requirements, giving a total shareholding of 99.5%. Everton fans will have breathed a sigh of relief, not only because this brought an end to Moshiri’s uncomfortable tenure, but also because they manage...