The Political Economy of Football V2

As the Chesterfield FC Community Trust prepares to take over the Spireites from owner Dave Allen, a sports finance expert warns that it won't be easy and that finances in particular will be a challenge:  https://www.derbyshiretimes.co.uk/sport/football/potential-be-successful-it-wont-be-easy-sports-finance-expert-proposed-chesterfield-takeover-2877086 Realism with the fans will be necessary in terms of managing expectations.   Dan Plumley reckons it is just about feasible below League One level. Local councils are providing the funding in this case although taxpayers who are not football fans may not be happy.

Chesterfield FC income was down nearly £2m in first season in National League and losses £35,000 a week, reports Kieran Maguire of the PriceofFootball. Wage bill down 20% but not enough to match fall in income. Turnover was down from £5.9m to just under £4m. Chesterfield owner D E D Allen lent the club over £2 million since the end of 18/19 but has then written off the loan. He has committed to covering the losses.

A takeover of Chesterfield by fans has stalled, although owner Dave Allen wants it to go ahead. The accounts for the year to 30 June 2019 revealed a loss of £1.85m compared with £1.06m the previous year. Turnover was down by £1.9m on the previous year, reflecting the effects of relegation. However, over £1m was raised in player transfer fees in 2017/18. (The accounts don't appear to be available online at Companies House yet, but it often takes about five days after submission). The Chesterfield Community Trust entered into a period of exclusivity with Allen at the end of December, but this has not been renewed and other bids can now be made. Allen is continuing to put in £150k a month to keep the club going, although this month it will be £200k. You need deep pockets to own even a National League club. Loans owed to Allen at the year end amounted to £9.3m, compared to £7.1m the previous year. I am sceptical about the fan ownership model, not because it's a case of the ...

A fans' takeover at Chesterfield is being talked about: Brink of fans takeover The former Football League club are currently in the relegation positions in the National League. They left their atmospheric ground at Saltergate (which I enjoyed visiting) and have a compact modern stadium. Chesterfield FC Community Trust has entered into a 'period of exclusivity' with majority shareholder Dave Allen to try and reach a deal by February. The Trust hopes to secure a 84 per cent shareholding and bring to an end Allen's ten year involvement with the club. One challenge in terms of catchment has always been proximity to the two Sheffield clubs, one now in the Premier League. I am sceptical about fan takeovers, but I wish them well.

Chesterfield's accounts for 2017/18 show that losses doubled from £420k to over £1m or £20,000 a week. They are reliant on director loans to keep afloat. They borrowed £1.2m last year from owner Dave Allen interest free. Chesterfield now owe £7 million to Dave Allen (interest free) and £3 million to former directors (interest of 5% on some of this). Surviving in the lower leagues is tough. Chesterfield income was down 10%. The club generated over £1 million from transfer fees which may include sell on fees but spent just £10,000 on new players. The wage bill was down seven per cent as the club was relegated and fewer bonuses were paid. However, over £4.1m was spent on wages and wage related costs which represented 71 per cent of turnover. £220k was spent on legal and professional costs, of which a large slice was probably agents fees. It is interesting that medical supplies cost £118k. Critics consider that the club has suffered from poor financial control and negligent ma...

Guardian journalist and top football writer David Conn discusses Chesterfield's relegation from the Football League for the first time in their history: Relegation He notes, 'A saga of budget overruns on the stadium, a boardroom walkout and a run of unsuccessful managerial appointments has seen the Spireites relegated.'

The chairman of Chesterfield FC states in his introduction to the 2016/17 accounts, filed online at Companies House: 'The level of debt continues to haunt us, although the loan interest payable has been significantly reduced.' (It went down from just under a quarter of a million pounds to just under £100k). Total loans owed to the owner and former owners amount to £9.1m. The club continues to be supported financially by Dave Allen who has provided further finance for the club during the year despite no longer being part of the board. Turnover fell by nearly £900,000 (£7.5m to £6.6m) compared to the previous year, mainly due to a reduction in transfer fees receivable in the year following some significant sales in 2016. The amount received fell from just over £2m to just over £900k. The business review notes, 'To continue to try and balance the books we must remain a development club, that is able to sell players for a value in the future.' Gate and season ticket mo...

Chesterfield FC have taken out a loan from director Dave Allen who is a casino and dog track owner. The loan is secured on the stadium. The repayment terms and the interest rate being charged are unknown. The loan may be to cover operating costs or to secure players in the transfer window for the relegation threatened club. The documentation is available online, but it is a standard agreement and does not contain any information about the amount involved: CFC 2001 Ltd.