The Political Economy of Football V2

National League system clubs paid over £1.2m to football agents in 2025/26. The largest sums were paid by former EFL clubs with Carlisle United, relegated last year, top of the list at just under £188k.   Promotion hopefuls York City spent £169k.  Forest Green Rovers forked out £164k and Southend United £80k.  National League leaders Rochdale paid £43k. Torquay United in National League South spent £15k as did Chelmsford City.   At Step 5 Bury managed to pay out £2,000.

Carlisle United are looking on the bright side of life despite their relegation to the National League, seeing many positives:  https://www.carlisleunited.co.uk/news/carlisle-united-share-annual-financial-statements-and-look-ahead-future Perhaps most significantly, the Platak family continues to invest in the club on and off the pitch. The club are in contention for an early return to the EFL, although the fact that only two clubs are promoted makes life challenging.   Many analysts consider that there should be three up and three down, but League Two clubs re understandably reluctant. The north of Cumbria surely deserves representation in the EFL

Relegation threatened Carlisle United have turned losses into profit with a big increase in revenue:  https://www.carlisleunited.co.uk/news/audited-annual-accounts-202324

The prospective American owners of Carlisle United have thrown down the gauntlet about the club's debt.  The deal cannot go ahead without the Pureplay debt being resolved:  https://www.newsandstar.co.uk/sport/23789797.prospective-american-owners-carlisle-united-focus-club-debts/

Carlisle United are in advanced negotiations over investment with an American group:  https://www.bbc.co.uk/sport/football/66758498 Florida businessman Tom Piatak is a military veteran from Florida and owns a transport logistics company.   The club statement is here:  https://www.carlisleunited.co.uk/news/2023/september/club-joint-statement-by-carlisle-united-and-its-shareholders/ There are also unconfirmed reports of Turkish interest:  https://www.newsandstar.co.uk/news/23776897.claims-turkish-consortium-bid-carlisle-united/

A legacy debt at Carlisle United is rising by £3,500 a week with rising interest rates adding pressure.  The club lost £600,000 in 2022/23:  https://www.newsandstar.co.uk/news/23640805.carlisle-uniteds-debt-purepay-rising-3-500-per-week/

Income is up 16% with turnover of £4.7m at Carlisle United as matches in front of fans return. Operating profits of £118k were down 75% as there were increased overheads. Carlisle had almost £1.7m in the bank at end of 21/22 but also sizeable creditors so the money cannot be spent. Carlisle generated over £600k in cash from day to day activities, but a closer look shows the importance of player trading as almost all of this was cash from player sales.   Matchday income was 22% of total. Carlisle employee numbers up by 44%, mainly due to admin staff doubling following end of lockdown. Total wage bill up as a result, with wages £61 for every £100 of income, or £71 if player sales excluded.   This is in line with Uefa recommendations. Carlisle spent over £100k on infrastructure in 21/22. Their ground is vulnerable to climate change related issues especially flooding. Carlisle borrowed from Edinburgh Woollen Mill which went into administration. The loan appears to have b...

A proposed takeover of Carlisle United has been called off.  In a long statement the board said that they had given the deal all the time they could:  https://cumbriacrack.com/2021/12/10/carlisle-united-takeover-off-read-the-full-statement-here/  

Carlisle United are contemplating life after Edinburgh Woollen Mill collapsed into administration, leading to a loan facility created by them no longer being available and in the hands of someone else, although it has not been called in:  https://www.newsandstar.co.uk/sport/19252498.carlisle-uniteds-david-holdsworth-finances-edinburgh-woollen-mill/

Even clubs in the lower divisions of the English Football Club are increasingly reliant on benefactors and that applies to Carlisle United and Edinburgh Woollen Mill: Increased debt Blues’ latest accounts, which show they owed Philip Day’s firm £1.31m by the end of last season. Turnover fell, matchday ticket income was reduced and the club made a loss of £121,000. Matchday income was down 17% as attendances down from 5,113 to 4,600. It is, however, among the top six spenders on football costs in League Two. The main cost for clubs is wags and Carlisle now paying out £86 in wages for every £100 of income, which leaves very little to cover other costs of running the club. Carlisle spent £55,000 on player signings in 2017/18, nearly all of this on Richie Bennett.

Carlisle United decided to improve the depth and detail of their annual report and the result is a fascinating insight into the challenges facing a League 2 club. The current season is their fourth consecutive season in the division. They make 'Football Fortune' a central concept which is a way of talking about randomness as a factor in football outcomes on and off the pitch. It can play a bigger part in the life of a smaller club which does not have the resources and income streams of a larger club. The report notes, 'The football industry continues to be highly uncertain, volatile and subject to random events. Professional football in League 2 has intense rivalry but with a generally evenly balanced competition'. There is a similarity in the size of clubs and their resources. 'This makes any additional funding available from unpredictable Football Fortune a key factor - cash from Cup success and player sales can make a big difference.' 'Beyond that, ...

Carlisle United have said that they are prepared to go into 'unprecedented detail' when they release the club's 2016/17 accounts: Fans to be told more In particular they will give an indication of the financial support received from Edinburgh Woollen Mill. The firm is run by Cumbria's richest man, Phillip Day. Between 2015-17 the club was pursued by a mystery billionaire who eventually made a formal offer. It appears that this was Syrian Yahya Kridi.