The Political Economy of Football V2

Losses at Northampton Town increased to nearly £3m in 2024/25 despite record revenues.   The playing budget was up by 20 per cent:  https://www.footballtradedirectory.com/northampton-town-post-2995m-loss-despite-record? Northampton is a 'stand alone' league club in its county (since the collapse of Rushden & Diamonds).  Nevertheless, its finances illustrate the challenges faced by lower league EFL clubs.

'Crazy' soaring wages in League One have seen Northampton's losses increase from £1m to £2.5m a year:  https://www.northamptonchron.co.uk/sport/football/cobblers-open-to-more-investment-to-stay-competitive-after-crazy-rise-in-league-one-wages-5421603 The club is open to more investment, but the chairman is proud of what they have achieved over the last ten years in terms of creating a stable club:  https://www.bbc.co.uk/news/articles/cnv2qz98mz0o

As the football governance bill goes through Parliament, is this one of the worst governance failures in modern football? https://www.terraceedition.com/home-haute/the-stand-that-hurt-the-town-sixfields-missing-millions-tom-reed-northampton

Northampton lost over £1m in their promotion year from League Two and debt increased to over £7m.  Title winners Leyton Orient lost over £4m:  https://www.northamptonchron.co.uk/sport/football/thomas-comfortable-with-cobblers-financial-position-despite-higher-losses-and-increased-debt-4573035

Northampton Town made a £949k loss on day to day activities but player sales reduced this to just £148k, reports Kieran Maguire.   Total losses over the years are over £8m and underwritten by shares and owner loans. Northampton did not sign players for any fees in 21/22 and total squad cost £26k. Northampton owe over £5m to Belle De Jour, based in British Virgin Isles.

An investigation into a £10.25m council loan to Northampton Town Football Club had 'serious failings' according to a public interest report from accountants KPMG and decision-making over the deal may have been illegal:  https://www.bbc.co.uk/news/uk-england-northamptonshire-55799753 Local authorities elsewhere in Europe and the United States often get involved in stadium financing, but this is perhaps a cautionary tale.

Northampton Town lost £1.67 million in 2018/19, reports Kieran Maguire of the PriceofFootball. Northampton Town survival due to continued support from parent company and other companies owned by directors of over £5.5 million. Northampton Town bought players for £100k in 2018/19. There were sales too but figures unavailable as club doesn’t produce profit and loss account data. The accounts state that 'The financial statements indicate that the company has insufficient cash reserves to continue trading without securing additional funding.' The club chairman has stated that he is pleased with the financial progress the club has made: Reduced losses

Chinese investors 5USport have sold their 60 per cent stake in Northampton Town back to the club's directors: Shares sold The principal explanation given is overseas investment restrictions and the Chinese authorities have certainly clamped down on speculative investments in football clubs. However, despite references to 'some progress' it was never clear how linking up with a League One club was going to help 5U's educational offering in China.

Northampton Council lent Northampton Town and over £10m to redevelop their stadium and surrounding land and (under previous ownership) the money seemingly vanished. The matter is the subject of an ongoing police investigation. Allegations have been made of theft, bribery, misconduct in public office and electoral offences. Such matters are necessarily complex and take some time to resolve, so it is useful to be reminded of what progress has been made and to have a timeline of events: Northampton Town