The Political Economy of Football V2

Walsall are one of the better run clubs in the lower levels of the EFL from a financial perspective, making effective use of cash flow planning, and it is therefore interesting to hear about their preparations for dealing with the consequences of Covid-19:  https://www.expressandstar.com/sport/football/walsall-fc/2020/06/04/leigh-pomlett-walsall-are-prepared-for-no-games-until-october/ They are prepared for no games until October, although they see this as a cautious estimate.  They are also uncertain whether fans will be allowed back in stadiums by then.  The alternative would be revenue derived from some form of broadcasting of the games. Clubs in the Bundesliga have been able to generate some funds from getting fans to pay for cardboard cuts of them in their usual seat. A recent balanced assessment in the Financial Times of the prospects for an effective vaccine suggested that it would be good progress if one was available for health workers by 2021.  Against that...

Walsall have made a profit for the fifth year in a row: Heading out on the highway Kieran Maguire comments, 'That seems to be enough to satisfy the ambitions of the club owner, Jeff Bonser, though some fans seem to be fed up with his control of the club, and the way he extracts money from it through owning the stadium.' Maguire concludes, 'Walsall, almost uniquely for a League One club, have shown that they can break even season after season by managing their wage budget carefully, and being ultra-cautious in the transfer market.' Promotion to the Championship could bring a financial bonanza, but would also push up costs.

Walsall in League One manage to break even each season, revenues staying more or less level in 2016/17 at £6.6m. One reason is that they don't pay a lot out in wages, a total bill of £3,12m that works out an average of £470 a week, although the directors get paid quite well. It should be noted that this figure includes support staff, so most players would get rather more. This means that wages as a share of revenue fluctuate around the 50 per cent mark: Balanced finances Solidarity payments from the Premier League increased from £360,000 to £645,000 which offset a fall in matchday income. It may be that Walsall's prudent finances makes a push for the next level unlikely and fans may get turned off staying in League One after a while.