Posted on 19th June 2020
Football figures and politicians have come out in support of proposals to “save professional football as we know it” by Damian Collins MP, former chair of the Digital, Culture, Media and Sport Committee.
Macclesfield Town will face a winding up petition on 9th September 2020 (© PA Images)
Posted on 19th June 2020
Forget Christmas – those with a nose for finance look forward to the release of Deloitte’s annual football report like no other day of the year. Ashley Brown, the FSA’s head of supporter engagement and governance, has been up since the early hours flicking through its pages. Here are his highlights…
Deloitte’s annual football finance report is out and those who pay close attention to such things will notice that it becomes a little more critical each year when it comes to football, finance and sustainability.
The report notes that a salary cap set at 70% of revenue at each club would have reduced 2018/19 operating losses by £308m “whilst almost entirely wiping out the combined pre-tax loss recorded by Championship clubs”.
“More rigorous and robustly enforced regulation than the EFL’s existing rules is required to force clubs to act more responsibly and save them from themselves,” say Deloitte. “change is needed desperately, both collectively, and in many cases individually.”
As the FSA has continued to highlight, the game must strengthen the way in which it is regulated and COVID-19 is shining a harsh light on this. Hopefully this will be the trigger for a reset of football, in particular finances and player wages. The latter has to come under control if clubs are to move towards a sustainable model.
The FSA has been pushing a set of reform proposals for the last two years and we’re developing those to encompass solidarity, wage caps, financial fair play – the demise of Bury FC and COVID-19 have opened the doors on these discussions. Our ideas have the backing of MPs and the FA Council.
The report also highlights the great opportunity there is in the current game, not just for growth but for some far more progressive thoughts on ownership and how the women’s game could be developed globally.
Deloitte also look at climate issues and consider how other sports have led the way in this area. At the FSA AGM last year we agreed to “support, develop and lead projects across football that look to improve the environmental impact of the game and work with supporters to raise awareness of environmental sustainability”. We’d like to work with the football authorities in this area.
Highlights:
Read more about Deloitte’s annual review here.
Football figures and politicians have come out in support of proposals to “save professional football as we know it” by Damian Collins MP, former chair of the Digital, Culture, Media and Sport Committee.
Last night the EFL announced that it is to undertake a comprehensive review of its regulations and procedures concerning the financial sustainability of its member clubs.
Derby County are the latest Championship club to be charged by the EFL for allegedly breaching their profit and sustainability rules.
Responding to the Wigan Athletic crisis, the EFL said this week that a “comprehensive reset” of financing the pyramid was needed to stop more clubs going to the wall.