Survey Reveals Football League Clubs Struggling Financially
By iSportconnect | April 3, 2012
A survey by administrators Begbies Traynor has reported that one in five Football League clubs are in ‘poor financial health’, with 13 of 68 teams surveyed across the Championship, League One and League Two reporting problems including winding-up petitions and late filings of accounts.
The survey, which was anonymous, found problems at 19% of the clubs it surveyed, compared to 1% in the wider economy. ‘Many clubs are continuing to spend too much, principally on players’ wages, as they always have done,’ said the firm.
Gerlad Krasner, a partner at Begbies Traynor, told the BBC: ‘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.
‘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.’
Begbies Traynor are currently overseeing the administration of Port Vale.