Author Topic: Clubs 'risk bankruptcy' with promotion  (Read 836 times)

Offline Jims Dentist

  • Graham Leggat
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Re: Clubs 'risk bankruptcy' with promotion
« Reply #15 on: October 12, 2017, 07:08:39 PM »

Interesting article on the BBC based on some research conducted by "financial data firm" Vysyble.

I must admit, haven't read the underlying research, just the BBC article. If you can't even be bothered to read that the highlights are as follows:

  • 19 clubs promoted from 2008-09 to 2015-16
  • Average losses in their promotion seasons were £300,000 per week, i.e., £15m over the year
  • 1 in 3 was immediately relegated
  • 2 in of 3 were relegated within 3 yrs
  • only 1 in 4 was "in the black" after 4 yrs

The key issue, on which parts of the article are a bit misleading IMO, seems to be that it's not the money spent getting promoted that's a problem, but rather, the much greater financial commitments the club makes trying to stay up after getting promoted, which aren't affordable when it's (inevitably) relegated shortly after. So not a problem that is, or can be, remedied by FFP.
Great stats, Statto!
I wonder if The Brighton Board have looked at this.
They have not broken the bank with their transfers. They are possibly adopting an attitude that if relegated so be it, we will be in a good position to challenge in the championship the next season if it happens.
Hard on the fans. But good !ong term for the club.