The Political Economy of Football V2

Football finance guru Kieran Maguire is relatively positive about Burnley's financial position after relegation as the Clartes have future proofed themselves against the eventuality, although some players may have to be sold:  https://www.burnleyexpress.net/sport/football/kieran-maguire-discusses-financial-impact-of-burnleys-relegation-from-the-premier-league-7449247 Maguire reckons that the real challenge is to make good use of the parachute payments and not suffer the fate of teams like Charlton and Stoke after they each had several years in the top flight.

2022/23 is the second full season at Burnley under the ownership of Alan Pace, who has presided over a rollercoaster period, including one relegation and one promotion, since taking over Burnley in December 2020, when his company purchase an 84% majority shareholding. This represented a dramatic change in approach for Burnley, as the new owners put in very little of their own money, instead making the acquisition via a leveraged buy-out, placing debt on the club for the first time in years and using the club’s own cash reserves. Burnley’s auditors (and indeed the club itself) have noted a “material uncertainty” around the the ability to continue as a going concern if they were not able to achieve the forecast player sales and cost reductions in the event of relegation. Some might greet this as a classic case of “No shit, Sherlock”, but it’s clearly not ideal to see such a comment included in the accounts, as it’s relatively rare for an auditor to sound such a note of caution. F...

The Zurich-based Swiss Ramble reviews the 2019/20 accounts of Burnley FC. Profit before tax dropped from £5m to break-even, mainly due to COVID impact, including an additional month of expenses. Revenue fell £4m (3%) from £138m to £134m and expenses increased £9m, though profit on player sales rose £8m to £15m. Profit after tax was £0.5m.    Break-even is the fourth best result reported to date in the 2019/20 Premier League Without COVID, revenue would have been £10.5m higher at £144m, due to £8.5m broadcasting rebate and £2m other lost income. The Clarets have made profits for four years in a row, aggregating £77m. In fact, they have been profitable each season in the Premier League, including 2010 and 2015. Losses reported in the Championship in 2014 and 2016 were driven by promotion bonuses. The profit from player sales more than doubled from £7m to £15m, mainly Tom Heaton to Villa and Nakhi Wells to Bristol City. Despite the increase, this was still firmly in the bot...

Speculation and critical comment continues to surround the takeover of Burnley.  Some of this may just arise from envy that an 'unfashionable' club like the Clarets could attract an investor, but there is enough substance to merit consideration. The report below from off the pitch.com contains as many questions as answers.   Calling them a 'small' team seems a bit harsh given the club's historical and recent record.   I don't like the word 'journey' in a football context very much and I doubt whether it is much used in Burnley, e.g., people don't say 'I'm going on a journey to Blackburn.'  In this case, a destination has been identified, but getting there may be more tricky. Asked for a comment, the local Claret said: 'I am both apprehensive and a bit excited by the new model. Faced with the realities of the transfer market Mr. Pace seems to have followed his predecessors in doing nothing. Predecessors also talked about a “global br...

Our local Claret in the Royal Spa was initially sceptical about Burnley's new owners.   However, on Saturday morning he called round to collect a book I was lending him on Bob Lord. 'He's going to live in East Lancashire!' he shouted from a social distance about the new chairman.  Indeed, he has pledged to spend 80 per cent of his time in Burnley, the rest in London and New York. I do hope it all works out.  I have been to Turf Moor as an away supporter, but also as a home supporter for the local Claret's 60th birthday (2-0 win over Hull).  It has a really authentic atmosphere. You can read Alan Pace's first press conference here:  https://www.burnleyfootballclub.com/content/burnley-a-good-fit-chairman Pace started looking at Championship clubs, but fell in love with Burnley.   One note of caution: he won't say how highly leveraged his £170m bid was or anything about the ownership structure of the club.  Time will tell whether he can make Bur...