Championship Clubs are playing a dangerous game by
Thu Jun 07, 2018 6:47 am
Championship clubs heading down a financial black hole, report claims
Daily Mail
Thursday 7th June 2018
Championship Clubs are playing a dangerous game by overspending in a desperate attempt to reach the Premier League, the annual report on the game's finances will reveal on Thursday.
As troubled Aston Villa continue their battle to stave off administration, the report shows teams in the second tier are gambling 99 per cent of their revenue on wages — way beyond the recommended figure of 70 per cent.
All but four clubs in the division were in the red during the period investigated for accountants Deloitte's review of football finances. 'Owners and managers have... taken the decision to stretch themselves financially to gain promotion,' Deloitte said.
Troubled Aston Villa are fighting to avoid administration after their play-off final failure
Villa's parlous finances have raised concerns this week and on Wednesday they saw off the immediate threat of administration by finding £2million to pay an overdue tax bill owed to HMRC.
The report reveals 13 Championship clubs spent more on wages than they earned in 2016-17.
The finance experts said the temptation to over-stretch was heightened by what they are calling 'the Newcastle effect' — in which the Tyneside club earned promotion after they increased their wage bill by eight per cent despite being relegated from the top flight in May 2016.
Newcastle's ratio of wages to revenue in the Championship was 131 per cent. The club recorded the biggest operating loss in the league — £55m. 'Newcastle was effectively run as a Premier League club... to secure an immediate return,' Deloitte said.
Deloitte claim 'the Newcastle effect' has heightened temptation to overspend in second tier
The club's wages accounted for 16 per cent of the total wage bill of the Championship. They spent 82 per cent more than Villa — the second highest spender in 2016-17. Villa ran up losses of £19.2m and spent £61.4m on wages. That's £40m more than Huddersfield Town, who were promoted that season.
Of Newcastle's high-risk gambit, Deloitte said: 'It remains to be seen whether Newcastle's success emboldens other clubs relegated from the Premier League to follow this strategy.'
Wolves took the same huge gamble last season — laying out £12.8m to Benfica for winger Helder Costa and £15.8m to Porto for Ruben Neves. But by the time they are pursued by the EFL for a breach of Financial Fair Play they will be massive Premier League earners.
Villa, who lost to Fulham in the Championship play-off final last month, need to make £40m in savings to avoid being fined for breaching FFP rules and have dire cash-flow problems.
In the Premier League, only Swansea (77 per cent) spent more than the recommended 70 per cent of revenue on wages.
Tottenham (42 per cent) spent the lowest percentage of revenue on wages in 2016-17. Manchester United, Arsenal and Leicester City spent less than 50 per cent of their revenue on wages. Burnley spent exactly 50 per cent.
Arsenal's commercial might is revealed by the new report. They have become the first club other than Manchester United to turn in a profit of more than £100m.
The overall proportion of revenue spent on wages in the Premier League is 55 per cent — the lowest since 1997-98. For the first time ever, no Premier League club reported an operating loss.
Daily Mail
Thursday 7th June 2018
Championship Clubs are playing a dangerous game by overspending in a desperate attempt to reach the Premier League, the annual report on the game's finances will reveal on Thursday.
As troubled Aston Villa continue their battle to stave off administration, the report shows teams in the second tier are gambling 99 per cent of their revenue on wages — way beyond the recommended figure of 70 per cent.
All but four clubs in the division were in the red during the period investigated for accountants Deloitte's review of football finances. 'Owners and managers have... taken the decision to stretch themselves financially to gain promotion,' Deloitte said.
Troubled Aston Villa are fighting to avoid administration after their play-off final failure
Villa's parlous finances have raised concerns this week and on Wednesday they saw off the immediate threat of administration by finding £2million to pay an overdue tax bill owed to HMRC.
The report reveals 13 Championship clubs spent more on wages than they earned in 2016-17.
The finance experts said the temptation to over-stretch was heightened by what they are calling 'the Newcastle effect' — in which the Tyneside club earned promotion after they increased their wage bill by eight per cent despite being relegated from the top flight in May 2016.
Newcastle's ratio of wages to revenue in the Championship was 131 per cent. The club recorded the biggest operating loss in the league — £55m. 'Newcastle was effectively run as a Premier League club... to secure an immediate return,' Deloitte said.
Deloitte claim 'the Newcastle effect' has heightened temptation to overspend in second tier
The club's wages accounted for 16 per cent of the total wage bill of the Championship. They spent 82 per cent more than Villa — the second highest spender in 2016-17. Villa ran up losses of £19.2m and spent £61.4m on wages. That's £40m more than Huddersfield Town, who were promoted that season.
Of Newcastle's high-risk gambit, Deloitte said: 'It remains to be seen whether Newcastle's success emboldens other clubs relegated from the Premier League to follow this strategy.'
Wolves took the same huge gamble last season — laying out £12.8m to Benfica for winger Helder Costa and £15.8m to Porto for Ruben Neves. But by the time they are pursued by the EFL for a breach of Financial Fair Play they will be massive Premier League earners.
Villa, who lost to Fulham in the Championship play-off final last month, need to make £40m in savings to avoid being fined for breaching FFP rules and have dire cash-flow problems.
In the Premier League, only Swansea (77 per cent) spent more than the recommended 70 per cent of revenue on wages.
Tottenham (42 per cent) spent the lowest percentage of revenue on wages in 2016-17. Manchester United, Arsenal and Leicester City spent less than 50 per cent of their revenue on wages. Burnley spent exactly 50 per cent.
Arsenal's commercial might is revealed by the new report. They have become the first club other than Manchester United to turn in a profit of more than £100m.
The overall proportion of revenue spent on wages in the Premier League is 55 per cent — the lowest since 1997-98. For the first time ever, no Premier League club reported an operating loss.
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Re: Championship Clubs are playing a dangerous game by
Thu Jun 07, 2018 6:47 am
Championship clubs are heading down a black hole as report reveals that 99% of revenue is being spent on wages in a desperate gamble to reach the Premier League
Deloitte's annual review of football finances will be released on Thursday
It reveals clubs are playing a dangerous game in their bid to reach the top-flight
13 second-tier teams spent more on wages than they earned in 2016-17
All but four of 24 sides were in the red during the period investigated for review
Deloitte's annual review of football finances will be released on Thursday
It reveals clubs are playing a dangerous game in their bid to reach the top-flight
13 second-tier teams spent more on wages than they earned in 2016-17
All but four of 24 sides were in the red during the period investigated for review
You do not have the required permissions to view the files attached to this post.
Re: Championship Clubs are playing a dangerous game by
Thu Jun 07, 2018 9:32 am
Forever Blue wrote:Championship clubs heading down a financial black hole, report claims
Daily Mail
Thursday 7th June 2018
Championship Clubs are playing a dangerous game by overspending in a desperate attempt to reach the Premier League, the annual report on the game's finances will reveal on Thursday.
As troubled Aston Villa continue their battle to stave off administration, the report shows teams in the second tier are gambling 99 per cent of their revenue on wages — way beyond the recommended figure of 70 per cent.
All but four clubs in the division were in the red during the period investigated for accountants Deloitte's review of football finances. 'Owners and managers have... taken the decision to stretch themselves financially to gain promotion,' Deloitte said.
Troubled Aston Villa are fighting to avoid administration after their play-off final failure
Villa's parlous finances have raised concerns this week and on Wednesday they saw off the immediate threat of administration by finding £2million to pay an overdue tax bill owed to HMRC.
The report reveals 13 Championship clubs spent more on wages than they earned in 2016-17.
The finance experts said the temptation to over-stretch was heightened by what they are calling 'the Newcastle effect' — in which the Tyneside club earned promotion after they increased their wage bill by eight per cent despite being relegated from the top flight in May 2016.
Newcastle's ratio of wages to revenue in the Championship was 131 per cent. The club recorded the biggest operating loss in the league — £55m. 'Newcastle was effectively run as a Premier League club... to secure an immediate return,' Deloitte said.
Deloitte claim 'the Newcastle effect' has heightened temptation to overspend in second tier
The club's wages accounted for 16 per cent of the total wage bill of the Championship. They spent 82 per cent more than Villa — the second highest spender in 2016-17. Villa ran up losses of £19.2m and spent £61.4m on wages. That's £40m more than Huddersfield Town, who were promoted that season.
Of Newcastle's high-risk gambit, Deloitte said: 'It remains to be seen whether Newcastle's success emboldens other clubs relegated from the Premier League to follow this strategy.'
Wolves took the same huge gamble last season — laying out £12.8m to Benfica for winger Helder Costa and £15.8m to Porto for Ruben Neves. But by the time they are pursued by the EFL for a breach of Financial Fair Play they will be massive Premier League earners.
Villa, who lost to Fulham in the Championship play-off final last month, need to make £40m in savings to avoid being fined for breaching FFP rules and have dire cash-flow problems.
In the Premier League, only Swansea (77 per cent) spent more than the recommended 70 per cent of revenue on wages.
Tottenham (42 per cent) spent the lowest percentage of revenue on wages in 2016-17. Manchester United, Arsenal and Leicester City spent less than 50 per cent of their revenue on wages. Burnley spent exactly 50 per cent.
Arsenal's commercial might is revealed by the new report. They have become the first club other than Manchester United to turn in a profit of more than £100m.
The overall proportion of revenue spent on wages in the Premier League is 55 per cent — the lowest since 1997-98. For the first time ever, no Premier League club reported an operating loss.
50% of pur revenue should mean a budget of around 60 million for us ? And still leave us without a loss
Re: Championship Clubs are playing a dangerous game by
Thu Jun 07, 2018 9:33 am
wez1927 wrote:Forever Blue wrote:Championship clubs heading down a financial black hole, report claims
Daily Mail
Thursday 7th June 2018
Championship Clubs are playing a dangerous game by overspending in a desperate attempt to reach the Premier League, the annual report on the game's finances will reveal on Thursday.
As troubled Aston Villa continue their battle to stave off administration, the report shows teams in the second tier are gambling 99 per cent of their revenue on wages — way beyond the recommended figure of 70 per cent.
All but four clubs in the division were in the red during the period investigated for accountants Deloitte's review of football finances. 'Owners and managers have... taken the decision to stretch themselves financially to gain promotion,' Deloitte said.
Troubled Aston Villa are fighting to avoid administration after their play-off final failure
Villa's parlous finances have raised concerns this week and on Wednesday they saw off the immediate threat of administration by finding £2million to pay an overdue tax bill owed to HMRC.
The report reveals 13 Championship clubs spent more on wages than they earned in 2016-17.
The finance experts said the temptation to over-stretch was heightened by what they are calling 'the Newcastle effect' — in which the Tyneside club earned promotion after they increased their wage bill by eight per cent despite being relegated from the top flight in May 2016.
Newcastle's ratio of wages to revenue in the Championship was 131 per cent. The club recorded the biggest operating loss in the league — £55m. 'Newcastle was effectively run as a Premier League club... to secure an immediate return,' Deloitte said.
Deloitte claim 'the Newcastle effect' has heightened temptation to overspend in second tier
The club's wages accounted for 16 per cent of the total wage bill of the Championship. They spent 82 per cent more than Villa — the second highest spender in 2016-17. Villa ran up losses of £19.2m and spent £61.4m on wages. That's £40m more than Huddersfield Town, who were promoted that season.
Of Newcastle's high-risk gambit, Deloitte said: 'It remains to be seen whether Newcastle's success emboldens other clubs relegated from the Premier League to follow this strategy.'
Wolves took the same huge gamble last season — laying out £12.8m to Benfica for winger Helder Costa and £15.8m to Porto for Ruben Neves. But by the time they are pursued by the EFL for a breach of Financial Fair Play they will be massive Premier League earners.
Villa, who lost to Fulham in the Championship play-off final last month, need to make £40m in savings to avoid being fined for breaching FFP rules and have dire cash-flow problems.
In the Premier League, only Swansea (77 per cent) spent more than the recommended 70 per cent of revenue on wages.
Tottenham (42 per cent) spent the lowest percentage of revenue on wages in 2016-17. Manchester United, Arsenal and Leicester City spent less than 50 per cent of their revenue on wages. Burnley spent exactly 50 per cent.
Arsenal's commercial might is revealed by the new report. They have become the first club other than Manchester United to turn in a profit of more than £100m.
The overall proportion of revenue spent on wages in the Premier League is 55 per cent — the lowest since 1997-98. For the first time ever, no Premier League club reported an operating loss.
50% of pur revenue should mean a budget of around 60 million for us ? And still leave us without a loss
Agreed Wez and thats what we might need to stay up this season
