The Political Economy of Football V2

The Premier League may have good intentions in trying to curb over spending by clubs and level the playing field to some extent.  However, clubs keep finding loopholes, most recently in the case of Chelsea and their women’s team. The League then changes the rules (if it can get consent from member clubs) but it is often a case of closing the stable door after the horse has bolted.    Fans of particular clubs often feel they are being unfairly targeted while others get away scot free.   We are still waiting for the result of the Manchester City case, but whatever it is, I anticipate further litigation.    The real winners in these cases are the lawyers who charge fees that reflects their expertise and their ability to deliver results off the pitch.    The Premier League continues to insist  that there is no case for an externa; regulator while failing to put its own house in order (and the EFL is no better). The Premier League has moved ...

The authoritative Swiss Ramble reviews the latest accounts of Leicester City from his base in Zurich. The loss before tax widened from £20m to £67m, as the pandemic led to revenue dropping £28m (16%) from £178m to £150m, though profit on player sales rose £5m to £63m. Expenses rose £23m (9%), mainly due to investment in the squad. Loss after tax was £60m. Revenue was significantly impacted by COVID, the main driver of the club’s revenue decrease was broadcasting income, which dropped £20m (16%) from £128m to £108m, while commercial fell £7m (18%) from £36m to £29m and match day was down £2m (11%) from £15m to £13m. Of course, all clubs have been adversely impacted by COVID, so Leicester’s £67m loss is far from unusual with no fewer than seven clubs posting losses above £50m.   Without COVID, Foxes revenue would have been £46m higher at £196m (10% more than 2019). £150m revenue is still £21m (16%) more than 2016, when they were crowned Premier League champions. However, much l...

Leicester City are hoping to have another go at Champions League qualification after an excellent set of financial results. It should be noted that these come from a club press statement and there are no detailed figures for analysts to drill down into. The club states, 'The earning potential afforded by the Club’s first appearance in the UEFA Champions League helped yield record pre-tax profits of £92.5m (2016: £16.4m) – the long-term reinvestment of which, under the guidance of the Srivaddhanaprabha family and its King Power Group of Companies, will be a catalyst in the Club’s growth and its pursuit of further sustainable success. Turnover for the year increased to £233m (£128.7 in 2016), owing largely to the Club’s outstanding performance in progressing to the UEFA Champions League Quarter-Finals, further than any other English club that season. The addition of European competition to the fixture schedule also boosted ticket revenue by 42 per cent, despite a third consecutive...

A new study examining the finances of the UK’s football clubs has revealed that Leicester City are the 20th biggest football financial powerhouse in the world. The Soccerex Football Finance 100 show the financial power of football clubs across different continents. Its authors say that the study underlines that 'the global football landscape has changed dramatically' over the past two decades, largely due to increased investor interest. Leicester City are the East Midlands’ only representative in the Soccerex Football Finance 100. The Foxes’ entry reads: 'Leicester City were a little-known club in world football until the 2015-16 season, when they won the Premier League title, outperforming the more fancied names in England and their considerably higher budgets. Reaching the quarterfinals of the Champions League in 2016-17 was also a milestone in the club’s history. Leicester City is owned by a Thai tycoon, which creates a big differential in competing in the market.'...