The Political Economy of Football V2

Burton Albion lost a staggering sum of over £8m last season and are now looking for new investors.   The club states: 'This was the result of decisions that, in hindsight, did not align with the targets of building a long-term and sustainable future.' The Nordic Football Group took over the Brewers last year and has decided to meet the loss with a loan.  A 30-40 per cent reduction in losses is anticipated for this season which would still leave them at nearly £5m.   The club 's ownership structure included 18 people at the time of the takeover, but this has now reduced to 10.   Sports investment agency Proto Capial LLP has been appointed to fine new investors.

Football finance guru Kieran Maguire reports on the accounts of Burton Albion.  Revenue at the Brewers was  £6.38m up 4%. Wages at £5.36m grew faster up 11%. Wages were £84 for every £100  of revenue up £5, a figure above recommended levels.  Underlying loss was £1.70m up 54% Player sale profits £0.22m, player purchases £0.31m .  Squad cost £0.56m.  Borrowings in year £1.5m. Total profit over the years £2.11m. Maguire comments: ‘Burton remain one of the very few clubs to be profitable over time, but at the current rate this is likely to only last a couple more years.’

Swedish-based Nordic Football Group have acquired a majority shareholding at Burton Albion from the long-serving chairman:  https://www.bbc.com/sport/football/articles/cq55y4l5exjo

The decision to scrap replays in the FA Cup has attracted widespread criticism, not least from fans, and it is difficult to see why it is necessary in the first or second rounds.   However, revenue and morale boosts for lower league clubs are not systematic and depend, literally, on the luck of the draw. When I was growing up winning the FA Cup was in some ways a bigger deal than winning the league, but that is no longer the case and sentiment clashes with the reality of modern football business.  Some fans hope that a regulator will be able to intervene in decisions like these in the future. Nigel Clough appreciates more than most how integral they can be.   In the winter of the 2005-06 season, he was seven-and-a-half years into a decade as manager of Burton Albion when the then non-League club landed a third-round tie at home to Manchester United. That game finished goalless, earning Burton — who had moved into their new Pirelli Stadium a year earlier — a ...

As the deadline approaches, clubs are filing accounts at a fast and furious pace.   Thanks to Kieran Maguire for this data.  Fleetwood Town lost more than £6m in 22/23, taking total losses over the years to nearly £31m.  Fleetwood owe other parts of the Pilley empire over £31m in terms of interest free loans advanced to the club. Burton Albion, one of the most sustainable clubs in the pyramid, lost just over £1m in 22/23. Player sale profits reduced these losses to £133k Burton bought players for £200k in 22/23 and had sales, presumably of Bosman or academy players, of £973k.    Peterborough United   have submitted their   accounts: Revenue £10m up 42%. Wages £7.7m up 15%. Underlying loss pre player sales £5.4m.   Player purchases £775k. Player sales £4 million.

 Burton Albion revenue was down £1m but costs fell twice as fast so losses just £100k from day to day trading in 2019/20 despite Covid at end of season. Burton received £496k in furlough payments in 2019/20. Burton sold/released players who originally cost £991k in 2019/20.

The question of scrapping FA Cup replays (they already in the fifth round) is a highly emotive topic. I do not agree with Jurgen Klopp's decision to absent himself from Liverpool's replay with Shrewsbury Town. I can understand the arguments about the winter break, and it is arguable that the timing of it is wrong. However, Klopp's decision looks rather arrogant and patronising. There is a lot of talk about the 'magic of the FA Cup', but attendances, particularly in the earlier rounds, suggest that that magic is lost on many fans. Cup competitions are very much secondary ones on the continent which is why the Cup Winners' Cup was scrapped. They are not a real measure of ability as too much rests on chance, although, of course, that is the very element that appeals to fans as do 'giant killings'. However, they are not really 'giant killings' when leading clubs put out reserve teams. FA Cup success can, of course, have a major impact on the f...

Burton Albion had a very modest trading loss by Championship standards of less than £6,000 a week in 2017/18 offset by the sale of Jackson Irvine to Hull. There was no borrowing from Burton Albion in 2017/18 and the only investment was £1,100 from a share issue as the club continued to live within its means. Gate receipts were just £1.8 million for Burton Albion in 2017/18. Commercial income of £11m includes about £7m of TV money which will fall substantially in 18/19 as the standard payout in League One is £1.1 million. The Burton Albion wage bill was up 30% in 2017/18 but they were only paying £77 in wages for every £100 of income which is low by Championship standards. The Brewers spent just over £1 million on player signings in 2017/18 and had sales of £1 million too. Burton Albion have no outstanding loans and operate on a small overdraft which was £77,000 at 31 May 2018.