The Political Economy of Football V2

The authoritative and tireless Swiss Ramble has tweeted from Zurich on the 2019/20 accounts of Bristol City.  [I should add that I am client of Hargreaves Lansdown]. The Swiss Ramble states: ' Like most Championship clubs, Bristol City make operational losses, though they have limited the damage with profitable player trading. This revenue source is under pressure (as are others) in the current pandemic, so they are lucky to have a benevolent owner in [Steve] Lansdown.' The Swiss Ramble estimates that Lansdown ' has put in around £203m to date (capital £133m, loan £70m) with little sign of the need for this funding going.' [He is the co-founder of Hargreaves Lansdown which is now a listed company]. [As at many clubs] ' Player trading has become increasingly important at the club with £78m profits in the last four years, compared to only £6m in preceding six years. As Lansdown said, this “is all part and parcel of the process” of making the club sustainable. That s...

Guernsey-based millionaire Steve Lansdown has paid £10m into Bristol City for a new share issue. Bristol has punched below its weight as a city in football. After a trip to Barcelona, he developed a model of a club covering several sports. Barcelona incorporates not just football, but other sports such as basketball and water polo. When Bristol Rugby was going through a financial crisis more than a decade ago, Lansdown took it over. A model in the executive bar shows plans for a convention centre which will be built adjoining the Ashton Gate stadium and will house a 4,000-seater facility for Bristol Flyers basketball team, which has become another prong in the Bristol Sport trident. Season ticket-holders can attend all three sports and the different codes share some training facilities, along with coaching, medical expertise and innovation in areas such as social media. His clubs are also following the Barcelona model of producing young talent through his various academies. Lansdo...

Bristol City are yet another Championship club hit by the skewed playing field caused by parachute payments concludes the authoritative Swiss Ramble in a review of their recently published accounts. The Swiss Ramble notes, 'Despite the growth in revenue, Bristol City's £26m revenue is still only mid-table in the Championship. For some context, in 2016/17 Newcastle led the way with £86m, a full £60m more. So far in 2017/18, Norwich City and Hull City have posted £62m and £56m (with Sunderland and Boro to come). It’s difficult to compete with clubs receiving Premier League parachute payments with no fewer than eight clubs benefiting from these in 2017/18.' 'If parachute payments were to be excluded, it would be a very different story. In this case, Bristol City would have the seventh highest revenue in the Championship, which would give them a very decent chance of making the play-offs.' 'Almost all clubs lose money in the Championship, but their £25m loss wou...

It is not unusual for Championship clubs to make big losses as they seek the prestige and riches of the Premier League. Bristol City have published their 2017/18 accounts and losses have increased from £3.5m to £23.5m because of lower profits from player sales and higher wages. The wage bill was up £5m and player sales were down from £16.7m to £1.8m. Fortunately, they have a generous benefactor in the shape of Guernsey resident Steve Lansdown who wants to put Bristol on the sporting map. He made his money from financial supermarket Hargreaves Lansdown which started as a very small venture and is now quoted on the Stock Exchange. [I am one of their clients and a very satisfied one]. His total commitment is £123m of which £65m is in interest free loans. Bristol City made £600,000 from their cup run, a decent sum, but dwarfed by their losses. Kieran Maguire of the Price of Football has tweeted: 'Bristol City parent Bristol City Holdings changes status from private to public comp...