The Political Economy of Football V2

Releagted from League One, Cambridge United have submitted their latest accounts reports football finance guru Kieran Maguire. Revenue was   £9.2m up 11%.    There was a parallel increase in wages of 11 per cent, total was £6.6m so they are 72 per cent of revenue.   Operating loss was £3.7m up 45%.      Borrowings £2.9m (mainly to group company);   Total losses over the years amount to £14.0m. Relegation led to a loss of £1n in commercial income. CEO Alex Tunbridge highlighted the ongoing modernisation programme but said that the fall in commercial income ‘further highlights the challenging financial landscape in the lower leagues at a time when the new Football Regulator is getting up and running. ‘’Although we were relegated the Club has continued to prioritise sustainable progress and development both on and off the pitch. We conducted a Football Review during last season to strengthen the football op...

Cambridge United have agreed in principle to buy back the freehold of the Abbey Ground from Grovesnor Properties who acquired it in 2010.   The decision has been welcomed by fans who are attached to their quirky ground which recalls an earlier era of football which many would see as more authentic:  https://www.cambridgeindependent.co.uk/sport/cambridge-united-to-buy-back-the-freehold-to-the-abbey-stadi-9243604/

One often doesn't get much intelligent analysis of the situation of League Two clubs. In some respects, there is better coverage of the non-league system. However, here is an exception about Cambridge United: What next for Cambridge United? The financial situation has stabilised, but the football has disappointed. The article notes that there is a need for 'some answers as to what they want to be and how they intend to get there. Many questions have been asked of the structure of the football side of the club. It is a system that, ultimately, makes just one person accountable for everything.' What always strikes me about Cambridge United is that they are playing in a university city. One could the same about Oxford United, but Oxford still has a significant working class population and substantial mature manufacturing industry. Cambridge is more dominated by the university and hi-tech companies. If you want to support, say, Arsenal or Spurs they are relatively acce...

Cambridge United made a loss before player sales of £1.4m in 2017/18. Player sales reduced the loss by £570k to give an operating loss of £835k and owners invested £535k to help cover the losses. Turnover was down from £5.2m to £4.8m. In part this was because of a reduction in cup competition income compared with the previous year. Cambridge United total losses nearly £5 million over the years, emphasising the difficulty of as much as breaking even in the lower leagues. Cambridge United player trading: Purchases £15,000, Sales £625,000. Cambridge United owners bought shares in club during year, also discovered accounts in previous years were so shoddy that 2017 losses were understated by £190,000. Cambridge United borrowed over £1/2 million from other companies controlled by the owners. The club is paying rent of £100,000 a year for the Abbey stadium in agreement with landlord to redevelop or relocate.