The Political Economy of Football V2

The latest Deloitte report on football finance calculates the benefits of promotion to the Football League. 'Coventry City, Ipswich Town and Hull City earned promotion to the Premier League for the 2026/27 season. Following their return to the top-flight after a 25-year absence, Coventry City can expect a revenue uplift of at least £210m across the next three seasons, based on projected increases in matchday, broadcast and commercial revenue. The other club that secured automatic promotion, Ipswich Town, may anticipate a minimum boost of £170m – this figure is comparatively lower as they were in receipt of parachute payments during the 2025/26 season, following their relegation from the Premier League in 2024/25. These figures could rise to £365m and £325m respectively, should both clubs avoid relegation after their first season in the Premier League. Amidst the controversy surrounding this year’s play-offs, Hull City ultimately defeated Middlesbrough in the final at Wembley to...

Coventry City owner Doug King is profiled in FT Wealth, of itself something of an accolade.The 59-year-old calculates risk and reward for a living. Since graduating from Loughborough University in 1990 with a degree in mathematical engineering, he has traded everything from grain to petroleum.   The business model of the average Championship club, however, requires another kind of risk management. Wage bills that exceed revenues. Seemingly unavoidable operating losses. Fans who feel like they own the clubs. Owners who pick up the bill until they won’t, or can’t. When he bought Coventry, he assumed more than £36mn of net liabilities and cleared debts owed to the former owners. “I think that I bought [the club] because I felt like I could do a pretty good job of running it or handling it. I like sport, I understand business, I understand trading, so when you get into contracts with players and you’re looking at transfer agreements   .   .   .   contingencies, payment plans, he gi...

With a record crowd at the CBS Stadum yesterday Coventry City fail to gain an anticipated three points against bottom club Sheffield Wednesday, but it is just a matter of time before promotion to the Premier League is confirmed. I remember watching the 1987 cup final victory with my eldest who now lives just down the road from the Sky Blues training ground at Ryton.    She celebrates her 60 th this year and my grandson is 20 this month. The fact that 1987 still figures so prominently in club folklore speaks volumes about the troubles Coventry have been through, especially since a 34-year stay in the top flight ended in relegation from the Premier League in 2001. Low points of the despised ownership by the hedge fund group Sisu included being forced to groundshare with Northampton in 2014, and Birmingham City from 2019-21, as the club teetered on the brink of oblivion. Relegation to the fourth tier in 2016-17 was the nadir. However, Mark Robins started the recovery, le...

My eldest lives down the road from the Coventry City training ground at Ryton.  During the years of exile at Northampton and Birmingham it was a forlorn sight, blighted by years of under investment.  Now high fences keep out inquisitive eyes.  A cluster of Sky Blues fans can usually be seen by the gate hoping to see players or even Frank Lampard himself. The Swiss Ramble has cast an inquisitive eye over the 2024/25 accounts for the Sky Blues.  As usual, the full picture is available on his Substack platform, but here are some highlights. Despite the improvement in the league, Coventry found life more difficult off the pitch, as they swung from an £8.7m pre-tax profit to a £21.6m loss, a decline of £30.3m in the bottom line. The positive was a large increase in revenue, which rose £4.8m (17%) from £29.3m to a club record £34.1m, but this was not enough to compensate for a significant reduction in profit from player sales, which dropped £20.6m from £23.7m to just £3.1m...

Coventry City have received a £15m cash injection but it's unclear whether its from ownerDoug King or a new investor:  https://www.coventrytelegraph.net/sport/football/football-news/coventry-city-doug-king-shares-31793657 The Sky Blues were disappointed in the play offs, but Sky Blue fans I have talked to admit that the club was not ready for promotion.

It was cloudy first thing this morning in Warwickshire, but now patches of blue sky have appeared, providing an analogy for the recovery of Coventry City. This is the first set of accounts under Coventry’s new owners, after local businessman King purchased the club in January 2023, initially through the acquisition of an 85% stake and then buying the remaining 15%. The previous owners, London-based hedge fund SISU Capital, had saved the club from administration in 2007, but came under fire from many supporters for their penny pinching approach in subsequent years. Coventry swung from a £4.9m pre-tax loss to an £8.7m profit, mainly thanks to a huge improvement in profit from player sales, which shot up from just £2.4m to £23.7m, though revenue also rose £8.9m (44%) from £20.4m to £29.3m. Last season’s profit bucked the trend, whereby Coventry had posted losses four years in a row. This was only the second time that they reported a profit in in the last 10 years – and the last occasi...

Warwickshire is covered by what looks like clag off the North Sea this morning, but it may clear later to reveal increasing patches of blue sky, offering an analogy to Coventry City’s revival. I was being driven through the Black Country on Saturday listening to the FA Cup match and an obvious Wolves supporter in a car in front pumped the air when they scored.    The Sky Blues, of course, went on to win a trip to Wembley.   The score was 2-1 when my partner's daughter popped into Aldi to buy some flowers and 2-3 when she came out. The 2022/23 were the final accounts of Coventry’s previous owners, after local businessman King took ownership of the club in January 2023, initially through the acquisition of an 85% stake and then buying the remaining 15%. The previous owners, London-based hedge fund SISU Capital, had saved the club from administration in 2007, but came under fire from many supporters for their penny pinching approach in subsequent years. During t...

After some very difficult years, Coventry City are now in a more stable position, challenging for promotion and in the quarter finals of the FA Cup.  I well remember the boost winning the trophy gave to the city.  The now CBS stadium is the fitting venue it was always meant to be. Coventry City have submitted their 2022/23 accounts, the first since the takeover by Doug King. Revenue   was up£2m but increased costs in Championship (perhaps including bonuses for getting to playoff) meant losses up to almost £8m before player profit sales and some technical items reduced this. The Sky Blues bought players for £1.8m and had sales of £2.4m in the year. The club also spent similar amount on infrastructure assets.   Some of this evidently went on the Ryton training ground is evident every time I drive to my daughter’s house there. Loans of over £26m were written off following takeover, replaced by loan of £6m from owner. Coventry have bought players for almost £9m sin...

London-based hedge fund SISU Capital Limited had saved Coventry City from administration in 2007, but came under fire from many supporters for their penny pinching approach. However, the SISU era recently came to a close, after local businessman Doug King took ownership of the club in January 2023, initially through the acquisition of an 85% stake and then buying the remaining 15%. Just to make Coventry’s renaissance even more inspirational, it has been achieved on a very low budget, as can be seen by a review of their 2021/22 accounts. These covered a season when the Sky Blues “achieved another creditable finishing position” of 12th in the Championship. Coventry’s pre-tax loss widened from £4.7m to £7.0m, despite revenue rising £6.3m (53%) from £11.8m to £18.1m. This was offset by operating expenses increasing £6.4m (38%) from £16.8m to £23.2m.   In addition, there were reductions in profit from player sales, down from £1.9m to £0.5m. Although losing money is clearly not i...

According to Deloitte Sports Business Group, reaching the top flight via the Championship play-off final in 2022-23 will earn the winner an increase in revenue of at least £170million across the next three seasons. This figure could rise to more than £290m if the club avoids relegation after their first season in the Premier League. Deloitte, the accounting firm, estimates one season in the Premier League will bring additional revenues of at least £90m. Add on two years of guaranteed parachute payments (the extra financial support that the Premier League gives to relegated clubs), worth close to £80m, and the play-off final will likely yield approximately £170m across three years to its winners, even if their stay in the top flight only lasts 12 months. Brentford, who secured a 13th place finish during their debut Premier League season, secured merit payments of close to £15m in 2021-22. Avoiding relegation in their first season also secured a third year of parachute paymen...

Here is a financial comparison of the two clubs competing in the 2022/23 EFL Championship play-off final, Coventry City and Luton Town.    On paper, the two clubs are pretty evenly matched. Coventry’s £18.1m revenue is slightly higher than Luton’s £17.7m, while their squad cost is £7.4m compared to Luton’s £5.5m. On the other hand, Luton’s £17.8m wage bill is higher than Coventry’s £15.7m. However, what is abundantly clear is that both finalists are punching well above their weight, considering the financial power of many of their Championship rivals.     In terms of revenue, both Coventry and Luton are towards the lower end of the table, well below the Championship average of £27m. Luton’s £2.3m commercial income is one of the lowest in the Championship, less than half of Coventry’s £5.0m. However, both clubs are far below the top clubs, led by Stoke City £16.6m, followed by Bristol City £15.8m and Fulham £14.0m. The real differentiator in the Champi...

Coventry City have finally agreed a fresh deal with Mike Ashley's Frasers Group to continue playing at the CBS Arena (formerly the Ricoh) beyond this season. The two parties have been in cordial but protracted talks for several months - the sticking point understood to have been over the annual rent - but have now reached an agreement which will see the  Sky Blues  continue to play at the stadium built for the football club for the next five years. Club owner Doug King had hoped to secure a longer term deal but the Stratford-based businessman insists he will "continue to positively engage" with the relatively new landlords of the Arena in order to secure a longer term deal and the stability that goes with that. The stadium would be an excellent setting for Premier League football.

Coventry City publish 2021/22 accounts, reports Kieran Maguire.  Revenue was up £6m due to return from lockdown.  Losses up slightly due to higher wages and overheads.  Wages £87 for every £100 of income, good by Championship standards.    Total income was highest for a long time. Impact of return from lockdown and Championship level crowds very clear as matchday income was much higher.   Broadcast income over five times higher in Championship than in League One so makes significant impact for Coventry.    Commercial income almost doubled as higher sponsor deals from being in Championship plus greater perimeter and merchandise sales. Rent bill increased by £1m. Net interest costs same as for most seasons, about £40-50k a week.   As a result of these costs for the third season in a row Coventry have lost about £100k a week. Total losses for Coventry now exceed £100m.   Borrowings have increased steadily over time under old owne...

Coventry City have signed a deal with the Fraser group to remain at the CBS Arena until the end of the season.  They are hoping to sign a longer term license:  https://www.bbc.co.uk/sport/football/62970327 Presumably the Fraser Group have secured a higher rental.   It was not in their interests to have the stadium unused, although some thought it was a ploy to facilitate a takeover bid.

BBC Coventry and Warwickshire are reporting that the new owners of the CBS Arena have issued Coventry City with an eviction notice.    More here:  https://www.bbc.co.uk/sport/football/63858805

Coventry City has been through many difficult years and the collapse of Wasps threatened the loss of their stadium.  But there is good news at last.  Local businessman Doug King is to take a 85 per cent stake in the club from hedge fund Sisu.  The club are also considering making a bid for the stadium:  https://www.coventrytelegraph.net/sport/football/football-news/coventry-city-takeover-live-sisu-25535116 However, former Newcastle owner Mike Ashley is regarded as the preferred bidder for the CBS Arena:  https://www.bbc.co.uk/sport/football/63656013   His group have now completed the purchase.

Early season postponements after pitch problems at the CBS Arena have cost Coventry City £1m in cash flow.   The money may not all be recovered when the potentially lucrative fixtures are replayed as this will happen midweek when attendances are usually lower:  https://www.coventrytelegraph.net/sport/football/football-news/coventry-city-dave-boddy-postponements-25028759

The hedge fund owner of Coventry City FC is open to offers from a buyer with the clout to capitalise on financial difficulties at Wasps, the rugby team that owns the football club’s shared stadium. Wasps, who play in England’s top rugby division, are in default on a £35 million bond, having failed to repay retail investors who helped to finance the purchase of the Coventry Building Society Arena in 2015. Sisu, a Mayfair-based hedge fund, is considering a sale of Coventry City, believing that Wasps’ distress may present an opportunity for a third party to make an offer for the club and, at the same time, bid to acquire the lease for the arena.  Sisu is thought to be open to the football club changing hands or a part-sale of equity if a third party also manages to acquire the lease for the stadium, which was built by the council in 2005. An anonymous source told The Times that the natural next step for Coventry City was promotion to the Premier League, but that would requi...

In his latest analysis of a club’s accounts the authoritative Swiss Ramble features the Football League club geographically closest to me, Coventry City.   Better times are here for the Sky Blues on the pitch.  They are back in the Coventry Building Society stadium (formerly the Ricoh).   There is discussion about a possible future move to a stadium built on land owned by Warwick University. Coventry City’s 2020/21 accounts saw the loss widen from £3.4m to £4.7m, due to squad investment after promotion to the Championship. Revenue rose £6.7m to ££11.8m, despite COVID, but expenses up £6.5m and player sales down £1.9m. Some good news in the accounts Coventry £4.7m loss is actually one of the better results in the Championship, much better than the likes of Bristol City £38m, Reading £36m and Middlesbrough £31m in 2020/21. They did well to restrict the size of the deficit, given there was a full year of the pandemic. Coventry have only reported a profit on...

The Premier League has published details of its funding for EFL clubs in 2019/20:  https://www.premierleague.com/news/1939285 Coventry City and Plymouth Argyle are featured as examples of clubs that have received extensive funding.   Football finance guru Kieran Maguire commented: 'Seems very strange that the Premier League publishes a very glossy document showing the amount of money given to EFL clubs, but still refuses to disclose how much PL clubs themselves received in 2019/20.' 'In previous seasons the PL was always happy to disclose the amounts given to individual clubs almost immediately after the end of hte season but for some odd reason declines to do so for 19/20, even when politely asked.'