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Ben Hayes - Charlton Athletic programme

Football Finance

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New Investment Fund For Clubs

At least six Football League clubs have begun negotiating with a City-based investment fund in the hope of borrowing money for the close season. The majority are believed to be Coca-Cola Championship clubs. Hero Global Football Fund has been set up to invest in football without taking equity in clubs. Backed by Emirates Bank, Hero plans to raise up to £100m based on minimum subscriptions of £100,000. The money will be made available for buying players and will be secured across the squad rather than against individual players.

Wenger Hits Out At Tax Changes

Arsenal manager Arsene Wenger has said that the era of foreign domination in the Premiership will 'soon be over' due to the declining value of the pound, which makes transfer fees more expensive, and the imposition in last week's Budget of a 50 per cent tax rate on high earners. All Premiership players fall into the £150,000-a-year bracket subject to the highest tax band and Wenger believes this will lead to an exodus of foreign players this month. They could end up paying an extra 16 per cent in tax when one takes account of the elimination of personal allowances for higher earners.

Interest Payments Keep Manchester United in the Red

Manchester United set a record for a British football club for full year sales in the year to June 2008. Turnover was up sharply in its three main areas of activity. Matchday receipts rose by 10 per cent to £101.5m. Commercial income - sponsorship, merchandising and licensing agreements - rose by 14 per cent to £64m. The biggest increase was in TV revenue which, on the strength of United's Champions League truimph, surged 48 per cent to £90.7m. Even so, matchday revenue from the enlarged Old Trafford stadium makes a bigger contribution to turnover.

Big Losses at Pompey

Portsmouth FC made losses of £16.66 m in the 2007-8 financial year, despite winning the FA Cup. The loss was nearly £7m less than the previous year and the club anticipates a further reduction next year. It is hoped to break even by the 2010/11 season. In the meantime, no buyers have been found for the club which has a reported debt of £80m. Last month Pompey postponed ambitious plans to build a new waterside stadium and decided to redevelop Fratton Park, in part because of the global financial crisis.

Why Administration in Football Clubs Common

Going into administration is a very common reorganisation device for football clubs. Research by John Beech at Coventry University says that since 1986 there have been 68 cases of clubs in English leagues becoming insolvent, some of them more than once, although liquidation remains rare. This is because administration is a tactical move by a financially challenged club. You put yourself in administration, proceed to a company voluntary arrangement and re-emerge with new directors and a refreshed balance sheet.

Taxman Goes After Football Players Image Rights

HM Revenue and Customs are launching a clampdown on the way top footballers are paid. They have begun a fresh wave of investigations into so-called 'image rights' payments by Premiership clubs to their players. Wigan Athletic has already confirmed that it has been examined by the authorities. In its most recent accounts the club states that it has 'undergone an investigation by HMRC into the correct operation of PAYE/NI on certain payments and expenses made to/on behalf of employees.' Club chairman David Whelan confirmed that the probe concerned image rights payments.

Football or Arms Race?

Podcast from University of Nottingham, featuring Dr Wyn Morgan.

Under discussion, the state of finance in football in light of the record-breaking Manchester City takeover.

Liverpool FC's Commercial Problems

Liverpool FC may be on track for what their fans hope will be another Champions League triumph which would offset their less satisfying Premiership performance. However, in progressing as far as they have, they are punching above their weight financially. When it comes to money as compared with performance on the pitch, Real Madrid are way ahead of them with a financial Deloitte money list table topping annual revenue of £290m compared with £167m at Liverpool. That puts them seventh in the Deloitte European money league, a quarter-finalist's performance.

Where The Recession Hits Football

Recessions, even prolonged and deep ones, do not hit all businesses equally. Domino's Pizza is an example of a business that has been boosted by the recession as cautious consumers substitute a takeaway for a meal out. Cinemas have also been doing good business, although attendances may have boosted by the success of particular films. The supermarkets that compete on price rather than quality or service have also been doing well. On the other hand, the motor vehicle industry has been hit hard. And estate agents, never the most popular businesses, have also taken a pounding.

Transfer Record Broken

Spending by Premiership clubs on new players in the January transfer window has hit a fresh all-time high of £160m according to Deloitte's sports business group. The amount may still go up because the transfer window was extended because of the bad weather so that deals in progress could be completed, but the total is already well above last year's £150m. Spending between Premiership teams made up around £105m of the £160m. Manchester City and Spurs have been the two biggest spenders.