The Political Economy of Football V2

I'm not sure that fan ownership of clubs is the panacea that some hope for, certainly at a higher level.  But congratulations to Partick Thistle where it has taken approaching four years to seal the deal:  https://www.heraldscotland.com/sport/23669411.partick-thistle-officially-fan-owned-years-long-saga-ends/

Partick Thistle are in financial trouble, having lost an estimated £280,000 in the last season.  However, there is no threat of administration:  https://www.heraldscotland.com/news/23589238.partick-thistles-financial-woes-state-play-explained/

Despite relegation to Scotland’s third tier the previous season and Covid-19 Partick Thistle managed to break even financially, get promoted and publish full accounts by mid-October. Why can’t other clubs operate such a model asks Kieran Maguire of the PriceofFootball? Revenue  was down 44%, furlough income £500k. Partick balance sheet is strong with over £600k in the bank and cumulative profits of a similar amount. The club have had a historic benefactor but have not frittered the money away. Partick’s wage bill was down 29% to less than £1.5m for everyone at the club. Average Premier League salary for a single player is £2.7m

Partick Thistle's accounts are out.    Partick Thistle income down 12% in 2019/20 due to Covid and day to day operations go from £46k profit to £356k loss. Club made money from ‘other income’ possibly player sales? Partick wage bill up 5% in 2019/20. Wages represent 76% of revenue, a wee bit above UEFA’s recommended ceiling of 70% but would have been lower perhaps without Covid-19. Club have negotiated big player pay cuts for 2020/21. Partick have had a big cash injection from Three Black Cats Ltd, the majority shareholder, in July 2020 that guarantees the club’s foreseeable financial future. Partick expect balance sheet boost of £1.9m when Firhill is formally gifted to the club.

Most clubs, particularly smaller ones, would welcome an open minded lottery winner investing in them. That is what happened at Partick Thistle and today Colin Weir's funeral cortége will arrive at Firhill en route to his funeral: Lottery winner's farewell Weir won £161m with his now ex-wife Christine in 2011. The debts of Partick Thistle were cleared and a new academy set up. Weir gifted a 20 per cent shareholding to the club's Trust in 2015 with another 55 per cent due to arrive in March. Thistle have always billed themselves as 'The Great Glasgow Alternative' in a city dominated by Celtic and Rangers. It's not a club a glory hunter would support, but it can claim to have a non-sectarian and inclusive fanbase. It is also probably more middle class in its composition.

Partick Thistle have published their 2018/19 results following relegation to the Scottish Championship. Revenue was down a third to £3 million but club managed to break even by reducing costs. Partick Thistle wage bill down 30% and employee numbers fell by 12. Club paid £64 in wages for every £100 of income, a respectable figure. Average wage £23,000 a year for all staff, directors took no pay. Kieran Maguire notes, 'To put Patrick’s wage bill in context, Manchester United were paying Alexis Sanchez each month what Partick paid in wages for all 85 staff, both playing and back office, in a year.' The club had £600,000 in the bank at the end of 2018/19.

Faced with a sale to an international group, Partick Thistle fans are launching a campaign for community ownership of the club: Thistle Forever The proposed sale to the owners of Barnsley FC will be subject to scrutiny under dual ownership rules. One concern is that Firhill could be sold for housing development as the area gentrifies.

English friends living for a time in Glasgow used to go to Patrick Thistle on the grounds that they were neither Rangers nor Celtic. However, being the third club in a city with two giant ones with impassioned sets of supporters is not easy. Partick Thistle have become the latest Scottish Premiership club to publish 2018 results. Income is up 11% on back of average attendances increasing from 3,900 to 4,700. Wage control improved as the club paid £61 in wages for every £100 of income. Partick, like most in the SPFL (with one exception, Rangers) are the epitome of a club that lives within its means, notes Kieran Maguire of the PriceofFootball. Operating profits tripled to £362,000 although one can expect a sharp fall in 2018/19. If the accounts are to be believed Partick's player recruitment consisted of free transfers for the 6th year in a row. They are not alone however in the SPFL where many of the smaller clubs take a similar approach to buying players.

Relegation from the Scottish Premier League could cost Partick Thistle £1m. That's a small amount compared with the financial penalty for relegation from the English Premier League, but a big sum in the context of Scottish football: Patrick Thistle Football finance expert Neil Patey commented, 'Partick Thistle has been run very well in the last couple of years. There is no debt since the share issue back at the end of 2015, they've made a small profit in the last couple of years. So they start from a good, sound financial basis.' But what they don't want to do if they're suffering a short fall in about £1m-plus of revenue is not cut the costs. And before you know it, you're making a sizeable loss.'