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5 Live investigation into Championship sustainability

Raith_C_Chattonell
Raith_C_Chattonell Posts: 5,673
in Other Football and Sports
Wages now outstrip revenue by 11 percent, hope the new owners are not discouraged. 

https://www.bbc.co.uk/sport/football/50674331

Comments

  • letthegoodtimesroll
    letthegoodtimesroll Posts: 10,615
    Flawed or incomplete research ? Looking down that list of clubs you can generalise what the story is behind each one that created that outcome. It doesn’t mean the championship business model is flawed, only the business models of individual clubs. With loyal customer bases eager for merchandise and refreshment and a product that is media desirable clubs should be paying their way. 
  • PragueAddick
    PragueAddick Posts: 22,143
    letthegoodtimesroll said:
    Flawed or incomplete research ? Looking down that list of clubs you can generalise what the story is behind each one that created that outcome. It doesn’t mean the championship business model is flawed, only the business models of individual clubs. With loyal customer bases eager for merchandise and refreshment and a product that is media desirable clubs should be paying their way. 
    Nonsense. The unsustainability of the Championship has been highlighted for sveral years, including on here, though you obviously were not paying atttention. For example an annual survey from BDO of CFO's of all league clubs established that they themselves considered this league to be the least financially sustainable of the four.

    The reasons were (and are, even more today)

    1. the massive disparity in TV revenue between those with parachute money and those without. A factor of around 4 and rising.

    2. The influx of owners throwing money short term at thier clubs in a deperate attempt to reach the moneypot of the FAPL.

    3. Merchandise and refreshment sales are utterly marginal in effect compared with TV revenue. Only corporate hospitality bring significant profitable revenue, but that of course requires the capacity for it. The Valley is a bit deficient in that field compared with at other clubs with more recently built FAPL level facilities. 

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