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GOOD GOVERNANCE

August 28, 2009

Today we start a series of articles penned by Dr John Beech, Head of Sport & Tourism Management at Coventry University.

John is a co-director of the Centre for the International Business of Sport and author/co-author/co-editor of a range of books, book chapters and journal articles on various aspects of sports management and English football management in particular.

His own blog/website can be found at http://footballmanagement.wordpress.com/ and is truly a must ready for any football fan concerned about where our beautiful game is heading.

The first thought provoking piece we reproduce with John’s kind permission was registered on his blog today. Great stuff.

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The BBC has reported under the headline Serie A to form breakaway league that “Serie A is set to copy the formation of England’s Premier League“, to be known as Lega Calcio Serie A (1). Before looking at a rather important detail that the BBC omits, it is worth looking at whether the formation of the Premier League is such a good model to choose.

There is no argument that the Premier League has negotiated enormous broadcasting rights over the year, but does those who voted for its formation benefit from this?

The original membership, it is worth noting, consisted of 22 clubs (reduced to 20 in 1995): Arsenal, Aston Villa, Blackburn Rovers, Chelsea, Coventry City, Crystal Palace, Everton, Ipswich Town, Leeds United, Liverpool, Manchester City, Manchester United, Middlesbrough, Norwich City, Nottingham Forest, Oldham Athletic, Queens Park Rangers, Sheffield United, Sheffield Wednesday, Southampton, Tottenham Hotspur, and Wimbledon – not a Premier League that we would recognise today, so it’s worth a closer (although I admit not terribly deep) look at how they have fared since the euphoric days of 1991.

  • Arsenal
    One of the few who have enjoyed continuous success, although much of that is directly attributable to Arsène Wenger’s efforts bringing results and hence revenues.
  • Aston Villa
    Have not been relegated, but financial success has eluded them.
  • Blackburn Rovers
    Have stayed up except for a blip in tier 2, but have made significant financial losses year-on-year through overspending on players.
  • Chelsea
    Certainly successful on the pitch, but their accounts tell a very different story. Staying not only up but in the Big 4 has stretched the deep pockets of Roman Abramovich. ‘Benefactor’-dependent.
  • Coventry City
    Relegation in 2001 saw them with huge debts (and within 25 minutes of Administration recently) and a stadium which they do not own.
  • Crystal Palace
    A pattern of yo-yoing, then in tier 2 since 2005. Serious financial problems and stadium ownership issues under Ron Noades and then Mark Goldberg, including a spell in Administration. Currently up for sale and under a transfer embargo.
  • Everton
    An average performance on what might have been anticipated – at least they have stayed up every season (just, on one occasion). Owner Bill Kenwright dreams of a takeover by a billionaire as he sees their debt as big and worrying (but manageable), so it’s hard to count them as a financial success.
  • Ipswich Town
    First relegated in 1995, they’ve made one short appearance since. Into Administration in 2003 with debts of £54m. Now pinning their hopes on reclusive ‘benefactor’ Marcus Evans.
  • Leeds United
    Best not to ask really. Once a European high-flyer, lately it’s been a tale of enormous debt, Administration and a drop to tier 3.
  • Liverpool
    Has certainly enjoyed on-the-pitch success, and few fans would not envy being fourth of the Big 4. Their dependency on banks is not something to envy though, and still their is no new stadium in spite of their success.
  • Manchester City
    One dip to tier 3 and a subsequent one to tier 2. Some worrying financial losses in recent years. Now ‘benefactor’-dependent.
  • Manchester United
    Highly successful on the pitch, thanks to Ferguson. Successful financially over this period, although while revenues have increased nine-fold, pre-tax profit has increased just under five-fold.
  • Middlesbrough
    A couple of instances of yo-yoing (and hoping to repeat that as they are currently in tier 2). Financially dependent on Steve Gibbons, one of the game’s few benefactors who do not need quotation marks round that soubriquet.
  • Norwich City
    Have spent more of the time in tier 2 since 1991; now in tier3. Have become Delia dependent, but know in need of a new benefactor.
  • Nottingham Forest
    The pre-PL glory days are long gone. In spit of their loyal following, a downhill path to tier 3, although now back to tier 2. Regular financial losses.
  • Oldham Athletic
    Downhill since 1994. In tier 3 since 1997. Into Administration in 2003, and almost extinction. Still seeking a new benefactor.
  • Queens Park Rangers
    It was slowly down-hill to tier 3, but back to tier 2 in 2004. In Administration in 2001.
  • Sheffield United
    All but two seasons have been spent in tier 2 since 1994. Consistent financial losses.
  • Sheffield Wednesday
    Relegated in 2000 and again in 2003, but back to tier 2 in 2008. In debt and seeking new investment.
  • Southampton
    Survived in the PL until 2005, but relegation coupled with debts incurred by building a new stadium pushed them into Administration this year, and into tier 3.
  • Tottenham Hotspur
    Have spent the whole of the time in the PL, enjoying moderate success. Made a good profit in the last available accounts, and looking with caution to build a new stadium.
  • Wimbledon
    The least successful of all the founder members, thanks to the antics of its owner. Into Administration in 2003 and Milton Keynes, and the following year relegated to tier 4. No longer exist as a team recognisible as the old Wimbledon, although AFC Wimbledon have so far made excellentprogress on the road back from oblivion.

The Premier League has hardly been an unmitigated success from the perspective of its founder members. It has managed to position itself as the most significant league in Europe, and the world, but at what price? Well, taking the aggregated debt figure for the twenty clubs in the PL last season, a tad over £3 billion. Hardly a model you would expect the Italians to want to emulate.

The BBC report it seems may have been slightly misleading however, and the new Italian ‘Premier League’ is perhaps not strictly a breakaway league in the Premier League sense. According to a sportbusiness report, Serie A and Serie B will be managed separately, but with a common president, Maurizio Beretta. Seria A will be able to negotiate joint broadcasting rights for their members, but a lot of important detail has yet to emerge in the English-speaking media. What are the arrangements for relegation and promotion? Will there be parachute payments, for example, or, dare I suggest, rocket payments ?

Much will depend on the future relationship between Serie A and Serie B, but it would appear that it has the potential to be significantly different from that between the PL and the Football League’s Championship. If any Italian-speaking blog readers can flesh out the detail of the relationship, it would be very helpful!

Dr John Beech

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One Comment leave one →
  1. sonsdiary permalink
    August 28, 2009 10:22 pm

    you can do the same with SPHELL
    COMMON DENOMINATOR
    price fans out of the game
    who wants to pay £23 to see hamilton v st johnstone and I dont mean any disrespect there
    I remember the 1st trust conference I went to at Hampden and everything was going well until Dundee utd trust director stood up and started by talking about the “product” and there was an audible sigh from the delegates
    how many times do I have say this a product is soap,shampoo,a car ,a TV ,-FOOTBALL IS A F****** GAME

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