The Political Economy of Football V2

Grimsby Town have moved from a modest profit to a more substantial loss:  https://www.insidermedia.com/news/yorkshire/grimsby-town-post-loss-as-income-returns-to-normal-results-show-how-challenging-it-is-for-lower-league-clubs-to-find-a-route-to-financial-sustainability Last year's turnover was boosted by a FA Cup run and from player sales. The club hopes that the arrival of an independent financial regulator will lead to a fairer distribution of revenues within football, but the legislation may yet to be watered down.

Grimsby Town publish 2021/22 accounts, reports Kieran Maguire. Figures don't tie in the previous year as club have remapped some numbers (nothing wrong with that). Turnover up 44% Wages up 25%. Went from £204k profit to £930k loss.  Owners put in a lot of money. Maguire notes: 'Getting promoted is a great event, but is expensive too, as Grimsby had biggest loss in a decade. Shows that the National League is a challenging division, especially with so many former EFL clubs in the competition.' For the fifth consecutive season Grimsby did not sign any players for fees. Grimsby owners lend the club £1.5 million interest free in 2021/22. Over £1.1m of loans were repaid. Presumably their FA Cup run will boost their finances this year.

Grimsby Town posted a profit in their latest accounts, but football finance guru Kieran Maguire highlights the challenge of balance financial sustainability against success on the pitch:  https://www.grimsbytelegraph.co.uk/sport/football/football-news/grimsby-town-financial-balance-expert-6594759

Grimsby Town's co-owner has admitted that they could not compete with the amounts being spent by Stockport County, but nor would they want to.  Projected losses are because of the amount being spent on infrastructure:  https://www.grimsbytelegraph.co.uk/sport/football/football-news/grimsby-town-finances-stockport-wrexham-6333937

The current owner of Grimsby Town does not seem to be too popular in some quarters:  http://www.codalmighty.com/site/ca.php?article=7768

Concern has been expressed by Grimsby Town fans after it was revealed that the majority shareholder planned to set up a company with a convicted fraudster, now known as Alex May after a name change by deed poll.  He was at Saturday's game and is said to be interested in investing in the Mariners:  https://www.grimsbytelegraph.co.uk/sport/football/football-news/grimsby-john-fenty-alex-may-4794167

Grimsby Town are pleased to report that despite the early curtailment to the 2019/20 season, the trading results for the year show an operating surplus of £145,660 after Taxation. The loss of the matchday income from the five home games that were not played due to the early curtailment of the season reduced turnover by just under 4 per cent from the previous year, this being offset by accessing the various Government business support schemes where we felt these were appropriate for the club’s circumstances.   All tax bills due to HMRC are paid up to date.

Grimsby Town have published their accounts for 2018/19. Income up 12% mainly due to broadcast revenue. Profit made due to player sale/loan income of £176k. Grimsby spent £46,600 on transfer fees in 2018/19. The wage bill was up five per cent to £2.77m. Grimsby’s main creditor is owner John Fenty. Club repaid £250k of loan in 18/19 following £200k previous year to reduce loan to £1.55 million. Grimsby total losses over the years just under £3m. The club is technically insolvent but not an issue whilst directors continue to back it. The Aaditors seem happy with this. The club is more or less cash generation neutral. Grimsby are committed to spending a further £107k on new ground plans.

Fifteen years ago Grimsby Town were in dire financial trouble with £2m of historic debt and the club's existence threatened. The latest financial results show a profit of £1m after the return to the Football League. Turnover was up £600k to £3.26m: Grimsby Town The club also generated additional income from ‘playing trading activities’ – the most notable of which being Omar Bogle’s move to Wigan Athletic for an undisclosed fee – thought to be around £1-million. The club has cleared an outstanding bank loan of £300,000. A move to a new purpose-built community stadium is seen as key to securing the club's future. Director John Fenty told the Grimsby Telegraph: 'For the long-term future of the club, relocation remains a priority. Our home at Blundell Park is still fit for purpose; we must stress that. We must also point out that we continue to pass all of the necessary checks.' 'But this [financial report] only strengthens what we are trying to work towards, a...