The Political Economy of Football V2

A deal to save Hartlepool United has collapsed after a locally born businessman saw the state of the club's finances. Chris Musgrave said, 'I am not prepared to sign blank cheques with no end in sight': Deal to save club is off A crowdfunding scheme and a big attendance for a game against Wrexham last Saturday may have raised enough funds to deal with immediate needs. However, the need for funds is ongoing. The club was never that strong financially, and had a succession of owners, but relegation from the Football League was the killer blow.

The analysis in the latest Deloitte Money League report shows that elite clubs are less reliant on income from fans attending home games than smaller rivals. While broadcasting income is a crucial source of revenue for all top clubs, the richest clubs can also tap into global fan bases and commercial deals. Manchester United has gained large increases in commercial revenue in recent years, despite the club having not won the Premier League since 2013. Almost half its income is achieved through sponsorship deals, such as its £750m decade-long kit contract with German sportswear group Adidas. Last year, the club signed its biggest 'global partnership' with Melitta, a German coffee machine company. 'The top ten clubs are global powers and that is shown if you look at their social media numbers as much as their financial numbers,' said Dan Jones, partner in Deloitte' spots business group.' 'But it's dangerous to talk about them having deserted their ho...

Newcastle United and Sunderland have fallen out of the Deloitte Money League, reflecting the impact of relegation from the Premier League. Newcastle had been in the top twenty since 2013, although they slipped to 21st last year. Sunderland were 29th last year: Money League Newcastle's prospects are unlikely to improve without a change of ownership, but the chances of that happening are receding.

The 2019 Deloitte Money League report shows that aggregate revenue for the top 20 Money League clubs rose 6% to €7.9 billion (£6.8 billion) in 2016/17, a new record, with the top three clubs – Manchester United, FC Barcelona and Real Madrid – earning a combined revenue of €2 billion for the first time. Manchester United retained top spot for a second consecutive year, generating total revenue of €676m (£581m). This year’s battle for first place was the closest in Money League history, just €1.7m (£1.5m) separated Manchester United and second place Real Madrid: United’s win in the Europa League Final proving critical in the club topping the list for a tenth time. Their Europa League campaign generated £39m. In a statement, Deloitte Sports Business Group partner Dan Jones said: 'United's ability to retain first position is all the more impressive against the backdrop of the weakened pound against the euro. With both Real Madrid and Barcelona forecasting further revenue growt...

Former non-league clubs often find it hard to build up fanbases when they are promoted to the Football League. Of the 11 present League clubs who were outside the Football League when automatic promotion from the non-leagues began in 1986-7 (leaving aside Wimbledon, MK Dons and Newport County, all offshoots of former league clubs), nine have recorded the nine lowest average league attendances this season. Even Burton Albion at 4,710 represent the lowest figure in the second tier since the 1980s. Wycombe are the only club to do respectably, 72nd with 4,372. Despite being in League One, Fleetwood can manage just 3,211. Three clubs have average attendances of under 2.000: Barnet, Accrington and Morecambe (1,443). What strikes me about these clubs is they generally do not have highly populated hinterlands, or face competition from bigger clubs nearby, as in the case of Accrington. Barnet in the London suburbs face similar problems. What is striking is how well league clubs relegate...

The remaining English director of Charlton Athletic, Richard Murray, thinks that February is the most likely month for the sale of the club. Two consortia are involved in negotiations and one is more advanced than the other: Charlton sale In any event Belgian owner Roland Duchatelet would want things resolved by the summer as he would not want another season of accruing losses.

Norwich City are in better financial shape than most Championship clubs, but only really succeed financially when they are in the Premier League. This is the key lesson that emerges from the club's 2016/17 accounts. As the author of the Swiss Ramble blog has put it, 'At its simplest Norwich City are a profitable club - when they are in the Premier League. Outside the top flight, they lose money.' After making a £13m profit before tax in the Premiership, they returned a £3.1m loss in the Championship. However, in a division in which clubs are notorious for raking up big losses as they seek to get promoted, this was one of the smallest in the division. Revenue dropped by 23 per cent to £75.3m, mainly due to lower television money (down by £19.7m) but gate receipts (£2.3m) and commercial revenue (£0.5m) were also down. Canaries fans are known as a loyal lot, and the fall in gate receipts was largely due to lower average attendances resulting from fewer away fans. Reve...