The Political Economy of Football V2

As the financial year comes to an end, there is a fast and furious race by clubs to submit their 2023/24 accounts and they all show losses.   Information courtesy of football finance guru Kieran Maguire. Ayr United lost £187k in 23/24 taking total losses to over£1.7m. Club is dependent upon director loans of £585k to continue.    Scottish clubs are generally quite prudent so this is quite a big loss by their standards.   Gillingham losses almost doubled to £4.3 million in 23/24. The losses were underwritten by a £1.3m donation and £2.2m of loans Salford City lost over £5.3m in 23/24 taking total losses to over £28m since being acquired by new owners Promotion chasing York City lost £235k in 23/24. Scunthorpe United lost £499k in 23/24 despite losing two thirds of their employees. Club had over £4 million of liabilities at 30 June 2024.    Included in the Scunthorpe United accounts for 23/24 is a £250,000 bad debt write off. I wonder who is re...

The class of '92 club, Salford City, are looking for new investment to fund their ambition to become a Championship club:  https://www.bbc.co.uk/sport/football/68401320   As Macbeth says in the Scottish Play: ' I have no spur to prick the sides of my intent, but only vaulting ambition, which o'erleaps itself and falls on th' other..' It seems to me that this project has never quite taken off in the way that was hoped while Manchester United is now getting a reboot after years of disillusionment for fans.

Salford City lost £56,000 a week in 2021/22 but had cash in the bank at end of season due to share issues and owner loans. Total losses over the years now exceed £15 million. Salford City had a squad that cost £156k at end of 21/22, lower than some National League clubs. Salford City issued £1.3m of shares in 21/22 and ended the season owing the owners over £12.5m in outstanding loans.

A bid by Sale Sharks and Salford City to buy the AJ Bell Stadium has fallen through:  https://www.business-live.co.uk/commercial-property/sale-sharks-salford-city-fcs-25798113

The authoritative Swiss Ramble examines the accounts of Salford City.  In the last three years Salford’s had £10.2m negative operating cash flow, having adjusted for non-cash items. They then spent £0.7m on players (purchases £0.9m, sales £0.2m), £1.6m on infrastructure (new stadium) and paid £0.4m interest.  This was funded by £12.7m loans from the owners. Since the Class of ’92 arrived, Salford have lost £15.1m in 7 years, including £14.2m in the last 4 years alone. As the club has progressed up the leagues, the losses have grown, though Gary Neville explained, “It is a lot of money to lose, but we’ve come up from step eight.” Salford’s £3.2m revenue was below quite a few of their rivals in League Two. Six of the clubs that published details had revenue above £4m, namely Bolton £6.2m, Forest Green Rovers £5.8m, Tranmere Rovers £4.9m, Bradford City £4.5m, Leyton Orient £4.3m and Walsall £4.2m.    Salford’s revenue has nearly tripled from £1.2m in 2018 to £3.2m i...

Salford City lost £65,000 a week in their first season in the EFL in 2019/20 and total losses now exceed £9 million.  Football finance guru Kieran Maguire comments that it is 'Disappointing that the club takes advantage of legislation to only show the bare minimum information. Other clubs such as Carlisle in L2 are far more transparent.' The parent company of Salford City Project 92 Ltd publishes far more transparent accounts and showed a loss of £3.7m in 2019/20.   Salford owe owners Project 92 Ltd £5.8 million at 30 June 2020. Owners also put £2.5m into club via a share issue.   Project 92 borrowed £3.8m in 2019/20, probably from shareholder Peter Lim.     Project 92 have ‘other creditors’ of over £12m, again likely to be from Peter Lim Project 92 wages more than doubled in 19/20 following promotion to EFL. Wages were £121 for every £100 of revenue, the sort of ratio one might find in the Championship. Salford signed players for £280k in 2019/20. ...

Salford City lost £3.3 million or £63,000 a week in the National League in 2018/19 in getting promoted to the EFL, reports Kieran Maguire of the PriceofFootball. Salford City owners Project 92 Ltd had lent the club over £5.4 million by June 2019. Project 92 Ltd itself owes £8.2 million to directors and shareholders. The majority of this (£6.4 million) appears to be from a shareholder, who many believe to be Peter Lim. Salford City spent £488,000 on player signings in 2018/19. This is higher than 23 clubs in League Two in the EFL in the same season.

Another club in Greater Manchester has been accused of buying the league: Salford City. Accrington Stanley supremo Andy Holt has even accused them of trying to steal a place in the Football League. Gary Neville has referred to 'a level of ferocity towards us on social media.' My first comment would be that perhaps it's time to wake up and smell the coffee. Money was important in football before the advent of the Premier League in 1992 which is now portrayed as a kind of football AD (or CE to use modern terminology). The sums have become bigger, and there is more global sourcing of funds, but money has always talked. The Ammies have won four promotions in just five seasons. They are the first club to bounce straight through the top tier of the non-league pyramid, having won the National League North last season. The Class of '92 owners (the Neville brothers, Ryan Gigegs, Paul Scholes, Nicky Butt and now David Beckham) have insisted on foundations being put down. ...

Salford City Football Club’s unaudited accounts suggest the club lost £32,000 a week in 2017/18 in being promoted from National League North, reveals Kieran Maguire of the PriceofFootball. The club is reliant on Class of 92 and other owners as club owes over £2.4 million to rest of the group. Salford City Football Club parent company Project 92 Ltd itself owes £2.4 million to directors/shareholders interest free.