The Political Economy of Football V2

After numerous false dawns, Clowes stepped up to save Derby from the threat of liquidation, just as it looked as if all hope had been lost, even though this reluctant hero would have much preferred to have remained in the background (and in his seat in Pride Park). Derby had entered administration in September 2021 after former owner, Mel Morris, was unsuccessful in his attempts to sell the club. Morris had bought a 20% stake in May 2014, before purchasing the remaining shareholding from North American Derby Partners in September 2015 to take full control. Given the club’s history, it’s incredible that things got so bad at Derby. Older supporters will remember a glorious period in the early 70s, when the legendary Brian Clough and Peter Taylor led the Rams to their first ever (old) First Division title in 1972, then guided the team to the semi-finals of the European Cup, where they were controversially eliminated by Juventus. There was a steady decline after the loss in the 2019 ...

After a challenging period, Inverness Caedonian Thistle have avoided administration:  https://www.thenational.scot/sport/24548287.inverness-ct-secure-financial-stability-amid-administration-threats/

The National League is a de facto fourth division of the EFL even if promotion and relegation is restricted.  It is no surprise that virtually all teams are full time as they seek the promised land of League Two or at least avoid relegation. But full time teams are now to be found in the next tier down.  In the National League North, Buxton, Kidderminster Harriers, Kings Lynn, Scunthorpe United (former EFL team) and South Shields are full time. Some teams have tried to develop a hybrid model which means that players generally come in three days of week for some kind of training/recovery/fitness/midweek game whilst part-time players generally operate on two evenings a week or one if there is a midweek game.  Some clubs remain entirely part-time, so it's not a level playing field.

The Premier League has now lost money five years in a row, adding up to a substantial £3.1 bln before tax. This is a dramatic worsening compared to the £1.3 bln profit that was generated in the preceding 5-year period, when it had posted profits on four occasions.  In 2022/23 half of the clubs in England’s top flight lost more than £50m, led by Aston Villa £120m, Tottenham £95m, Chelsea £90m and Leicester City £90m. Operating losses have significantly grown, so the Premier League lost an eye-watering £5.1 bln in the last five years, compared to just £369m in the preceding 5-year period.   In fact, operating losses have more than tripled from the £413m before the pandemic in 2018/19 to the £1.3 bln in 2022/23, when no fewer than six clubs lost more than £100m: Chelsea £249m, Leicester City £151m, Aston Villa £139m, Everton £120m, Leeds United £106m and Wolves £101m. The magnitude of the operating losses underlines the importance of profit from player sales to the Premier Le...

Torquay United Supporters' Trust have taken a minority stake in the Devon club which has been through difficult times:  https://thefsa.org.uk/news/torquay-trust-takes-ownership-share-in-club/

Profitability and sustainability rules do not justify ticket price hikes by Premier League clubs given that matchday is a relatively small part of total revenue argues the Football Supporters' Association.  The increases have occurred across almost all clubs with Nottingham Forest offering an example:  https://thefsa.org.uk/news/high-ticket-prices-are-not-the-answer-to-psr/

John Textor’s Eagle Football Group has made a final bid to take over Crystal Palace.  The group fronted by the U.S. businessman, which owns an existing 45 per cent stake in Palace, launched an offer which they say placed a valuation on the club “that far exceeds levels of prior investment” and would see them take full control. It remains to be seen whether Palace’s other three General Partners — chairman Steve Parish and fellow U.S. businessmen Josh Harris and David Blitzer — are prepared to sell their stakes, but Textor fears they will knock back his offer. If he is indeed unsuccessful then he is expected to renew efforts to sell his own stake in Palace — he has engaged investment banking firm Raine Group to actively seek a buyer for Eagle Football’s stake — and concentrate on acquiring fellow Premier League side Everton, with whom he has entered a period of exclusivity after talks with their majority owner Farhad Moshiri. If he is to successful...