Member Article

English football clubs face financial difficulties

The number of football clubs facing financial difficulties has more than tripled since October 2012, suggests research from Begbies Traynor.

The Begbies Traynor Red Flag Alert Football Distress Survey showed that 10% of clubs in the Championship, and divisions one and two of the Football League, faced financial distress. The proportion had been 3% in October.

Partner at Begbies Traynor, Gerald Krasner, said: “Football clubs feel the pinch in the spring each year as the receipts from season tickets, television money and other income that lands earlier in the year runs low.

“This accounts for the rise in distress in the past six months, but the comparison with distress levels in the game a year ago indicates the start of a welcome fall in underlying financial problems. Clubs may well be making improvements in housekeeping and good financial management in advance of the of UEFA’s new financial play regulations.

“That said, as well as the well-publicised issues at Portsmouth and Coventry, there are at least five other clubs struggling to keep their heads above water with a few months left of the season.

“What we have also seen through the survey is that the distress is being felt much more in the lower divisions, and there are likely to be problems ahead for at least six more clubs over the coming month.”

Match attendance figures showed that average gates in the Championship, Division 1 and Division 2 fell by 3%, 16% and 5% respectively so far this season, while Premier League numbers rose.

‘Distress’ factors as measured in the survey include clubs with serious court actions against them, including winding up petitions and high court writs; clubs that have been issued with striking off notices for late filing of accounts; those with county court judgements against them; and those with serious negative balances on their balance sheets.

This was posted in Bdaily's Members' News section by Tom Keighley .