The Political Economy of Football V2

Things have changed a lot at Craven Cottage since Tommy Cooper was chairman.  Fulham are arguably London’s poshest club.  As their chief executive has said, Fulham supporters turn left on the plane.   I remember going there some years ago and was placed next to home supporters who were wearing suits.   The club also experimented for a while with having a section for ‘neutral’ fans. The following analysis draws on the latest report from the Swiss Ramble.   The accounts are now a year old, but as the forensic analyst observes from his Zurich lair, the business model remains much the same. i.e, the amount the owner has to shell put would consume all my non-property assets in five days. Under Silva, Fulham have established themselves as a solid Premier League club, losing their tag as a “yo-yo” club. Before the arrival of the Portuguese coach, on the previous two occasions that they were promoted to the top flight they had failed to avoid an immediate ...

Manchester United have taken out a further $125million in long-term debt following a refinancing of borrowings related to the Glazer family’s 2005 takeover. A filing to the U.S Securities and Exchange Commission (SEC) confirmed on Friday that United have restructured their $425m senior secured notes, which were due for repayment next year. The refinanced debt now amounts to $550m, at a higher interest rate of 5.36 per cent. The previous rate, secured in 2015, was 3.79 per cent. At that higher rate, United’s annual interest payments will rise by approximately £10m at the current exchange rate. During the 2024-25 season, United paid out £37m in interest costs. Having previously been due for repayment in June 2027, United’s terms have now been extended until 2031. United’s senior secured notes are one of the club’s two tranches of long-term debt, alongside a secured term loan facility worth $225m. Both are a legacy of American businessman Malcolm Glazer’s controversial leveraged...

The multi-billion-pound regeneration project that includes a new stadium for Manchester United could be plunged into a “period of uncertainty” if Andy Burnham wins the Makerfield by-election and vacates his present role, The Times can reveal. While the Old Trafford Regeneration Mayoral Development Corporation received UK government approval in January, success for the ‘King of the North’ on June 18 means he would vacate the office of mayor immediately. A by-election would then need to take place by August 6.  But there is concern among senior figures linked to the project that such a change could hinder progress on the building of 15,000 homes as well as a state-of-the-art 100,000-seat stadium on the 370-acre site, with a new mayor potentially able to withhold approval for some funding arrangements, direct the board to shift its focus to the residential development or deny the compulsory purchase of land should it be required.  A spokesman for Reform UK said they would c...

Daniel Kretinsky is poised to become the largest shareholder at West Ham United amid the continuing uncertainty around David Sullivan’s future with the club.  As The Times reported last weekend, club insiders believe the Czech billionaire will respond to Sullivan’s resignation as co-chairman — a decision he took in advance of the publication of a joint investigation by The Times and the BBC into allegations of sexually exploitative and predatory behaviour when he was making his fortune in the adult industry — by increasing his control of the club, who were relegated from the Premier League last month. At present Kretinsky has a 27 per cent share, with Sullivan’s 38.8 per cent now under the scrutiny of the Independent Football Regulator (IFR) in the wake of the allegations.  Sullivan, 77, denies any wrongdoing but the IFR could yet force the British businessman to divest his shares if it now follows its preliminary inquiries by launching an investigation that concludes he...

Just when you think Wolverhampton Wanderers are going to be a normal football club, back come Gestifute and Jorge Mendes to remind everyone what they signed up for. The reaction of thousands of Wolves supporters to Rob Edwards suddenly being sacked — or indeed neutrals seeing the surprising news break late on Wednesday night or early on Thursday morning — will have been a collective: “What? Huh?” That will have been immediately followed by a click on Google to search “Cesar Peixoto”. He is considered one of the most promising coaches in Portuguese football. And he has inspired Gil Vicente to be able to compete with clubs boasting significantly larger budgets. However, his career history is checkered to say the least. He was sacked after short-term stints at Pacos de Ferreira and Moreirense, and his 15 months in charge at Gil Vicente is the longest he has lasted at any club. While guiding them to sixth in the Primeira Liga is a notable achievement, it’s not exactly unhea...

An independent commission ruled on Wednesday that Everton must pay Burnley £35.1m after their breach of the Premier League’s Profitability and Sustainability Rules (PSR) in 2021-22 was found to have given them a crucial sporting advantage. Everton stayed up and Burnley went down in that season but, four years, on there is now a big bill to settle. Everton, who said in a statement they were “surprised and angered” by the verdict, intend to fight on but the case is likely to have long-term implications. This all dates back to the 2021-22 season, when Everton were found to have breached PSR with an overspend of £19.5m. Everton finished that campaign in 16th position but, importantly in this case, Burnley ended up relegated in 18th. The final gap between the two clubs was four points. Burnley have always felt wronged, believing that Everton’s breach resulted in them enjoying an unfair sporting advantage. The claim has consistently been made, all the way back to May 2023 with the ...