Football League clubs 'in poor financial health'

[davieG]

BBC

One-in-five clubs in the Football League are in "poor financial health", according to a survey by administrators Begbies Traynor.

Begbies Traynor is overseeing the administration of Port Vale, the latest in a list of clubs including Portsmouth and Glasgow Rangers in trouble.

"Many clubs are continuing to spend too much, principally on players' wages, as they always have done," it said.

The survey did not include any teams in the Premier League.

The Football League refers to the three divisions below the top flight - the Championship, League One and League Two.

Of 68 teams surveyed in those divisions, 13 have signs of distress such as serious court actions against them, including winding-up petitions, late filing of accounts and "serious" negative balances on their balance sheets.

That 19% compares to just one per cent in the wider economy, the firm said.

'Underlying problems'

"While Premier League clubs are guaranteed huge television money every year and some have extremely wealthy backers, there are signs of genuine financial distress among a significant number of football league clubs," said Gerald Krasner, a partner at Begbies Traynor.

"The sales of season tickets for next season, many of which are paid for during April and May, could provide some short-term relief for struggling clubs, but it won't solve the underlying problems."

The financially distressed clubs include three in the Championship, six in League One and four in League Two.

The deadline for potential bidders for Port Vale was Monday. Begbies Traynor have said they were expecting five bids.

Portsmouth's administrators Trevor Birch have welcomed initial interest by the Portsmouth Supporters' Trust to buy the club through a share scheme.

[Guest ttfn]

Something about bears pooping in woods springs to mind.

Worrying, but not surprising.

[accessory]

Something about bears pooping in woods springs to mind.

Worrying, but not surprising.

This.

There are too many clubs chasing too little money.

A massive restructuring needs to take place, but short-term self interest prevents it from happening.

Sadly it may take a number of clubs going bust (Portsmouth being the first), to drive home the point that changes are needed.

[Trav Le Bleu]

We should be more like the Bundesliga. If they can do it, why can't everyone else?

If we'd lost the Second World War we'd have cheaper football.

[FantasticMrFuchs]

This is what annoys be about the state of English football. Only the teams in the Premiership get the massive pay day and then continue to get the pay days even if they are relegated with parachute payments. I would love to see more L1 & L2 action on the TV but you don't get it because the BBC controls it all and doesn't give others a fair crack at the whip.

[davieG]

This is what annoys be about the state of English football. Only the teams in the Premiership get the massive pay day and then continue to get the pay days even if they are relegated with parachute payments. I would love to see more L1 & L2 action on the TV but you don't get it because the BBC controls it all and doesn't give others a fair crack at the whip.

How does the BBC control it all?

[FantasticMrFuchs]

The BBC have contractual rights to broadcast the lower leagues games and commentaries but yet choose not to.

Sky get to show 65 games from the football league including the play-offs for all 3 divisions which are 15 of those 65 games.

My point is that the only ones damaging are the media who control it all, If they want to improve it then they need to look at the companies that monopolise the game.