The Political Economy of Football V2

The idea of 'B' teams playing in the EFL has always been controversial and firmly opposed, even if development sides have been allowed into a cup competition.   However, Rangers have suggested that the 'Old Firm' could be allowed 'B' sides as part of the controversial Scottish league restructuring. Meanwhile, Brora Rangers think that the clock is ticking for their hopes of promotion from the Highland League:  https://www.pressandjournal.co.uk/fp/sport/football/highland-league/2245565/clock-is-ticking-for-league-reconstruction-says-brora-chairman-powrie/

The Bundesliga model of ownership is often treated with almost uncritical adulation in the UK, but it is possible to circumvent its rules. Off the Pitch reports: Owner Red Bull provided the German club with a €100 million loan last season.   That was despite a revenue growth of almost €23 million, primarily stemming from the sale of Naby Keita to Liverpool.   Without player sales, however, Leipzig would have recorded a significant loss.   Success for Red Bull owned club RB Leipzig have revealed their financial results for the 2018/19 season, a year which marked another significant step forward for the Red Bull-owned club who managed to enter the Champions League for the second time through a third place Bundesliga finish. The club's revenue grew by €22.8 million to €268 million (including player sales), thanks to the s...

Reports are suggesting that Charlton Athletic, the South-East London club struggling on and off the pitch, have been sold to a consortium led by Manchester-based businessman Paul Elliott:  https://www.dailymail.co.uk/sport/football/article-8400475/Charlton-owners-agree-sell-club-Manchester-based-businessman.html Former owner Roland Duchatelet continues to control the stadium and the training ground which have been leased out. Charlton fanzine editor Rick Everitt has commented that this could mean the club will have its fourth set of owners in a year.

QPR chief executive Lee Hoos has back calls for a wage cap in the EFL and discusses different types of wage cap, drawing on the earlier experience of the Super Hoops:  https://en.brinkwire.com/sports/qpr-chief-executive-lee-hoos-backs-the-wage-cap-crusade-in-the-football-league-amid-pandemic/ He also talks about a closer alignment between the Premier League and the Championship. He notes, 'The problem is, if you talk about Premier League 2 it sounds like a breakaway. But I’m just talking about the Championship being more closely aligned to the Premier League.' In many ways the Championship is already a de facto Premier League 2 in terms of its spending patterns, but these may turn out not to be sustainable if they ever were.

Major League Soccer's (MLS) commissioner Don Garber has revealed that the North American soccer league will suffer a US$1 billion loss in revenues due to impacts of the coronavirus pandemic,, despite concessions made by the players' union:  https://www.sportspromedia.com/news/don-garber-mls-2020-soccer-revenue-losses-coronavirus

Manchester City are preparing for the legal battle that will determine their place in the Champions League. The three day hearing before the Court of Arbitration for Sport wil be carried out by video conference.  A decision is not expected until August:  https://www.standard.co.uk/sport/football/manchester-city-ffp-case-champions-league-pep-guardiola-sterling-de-bruyne-a4462026.html They refute all charges of financial fair play breaches made against them and have appointed a top barrister to represent them. One interpretation is that Uefa were looking for someone to pin charges on to demonstrate that they took their financial fair play rules seriously and City looked a better prospect than PSG for a variety of reasons.

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.