Football after Covid-19

While nothing much is happening with Birmingham City, I have been reading some discussions on how football should change after Covid-19. An article by Mark Palios, the chairman of Tranmere Rovers, said, “The professional game cannot survive without fundamental reform in respect of its major cost: player wages.” Darragh MacAnthony, the owner of Peterborough, suggested factoring that would allow money due for the Sky TV rights to be paid to clubs earlier in exchange for paying a penalty. Parachute payments have also been mentioned. Over half of the money that the Premier League gave to the English Football League (EFL), £260m out of £400m,  went to the nine clubs that were relegated in the previous three years.  

For me, the main question is whether it is possible to get the richer clubs to share what they have. The Premier League was formed in 1992 so that it could do a deal with BskyB and get a bigger share of the TV money instead of having to share it out between all 92 clubs in the League. The raison d’être of the Premier League was to get more money so I don’t expect the top clubs to want to give any away.

I don’t understand football finance but it seems clear that something has got to change.  Players at Premier League Chelsea have not yet managed to reach an agreement on pay cuts.  Colchester United, in League 2, have released four first-team players due to financial pressure, including their club captain. There is a tremendous gulf between top and bottom Leagues.

In the early days of professional football there was some sharing of gate money so that the teams with big crowds didn’t have too great an advantage and the game remained competitive. Match gate receipts were shared between the home team and away team with the away side being guaranteed £15 a match in 1888. From 1919 to 1983 the away team was given 20% of the gate money.  Now the home team gets all the money in League games so teams with big stadiums and large crowds have an advantage. The gate receipts from FA Cup games are still shared, with each team getting 45% and 10% going to a central pot.

I think that the game is getting less competitive at the top. In the 27 years since the start of the Premier League, 6 different teams have won it and 4 of those were in the top 6 for matchday income per match in 2018-19. In the previous 27 years, there were 9 different champions. My personal preference would be for the game to be as competitive as possible. I think the way to do that would be to reverse some of the changes made so that income from gate receipts and TV is shared more equally.  I’m afraid that seems rather unlikely to happen.

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1 thought on “Football after Covid-19

  1. Russell Dempsey

    If money were shared equally, relegation wouldn’t be to the detriment of any club, but the slide is almost exponential. A scale should be put in place. Even if it’s Premier gets double the Championship cash and can pay double the salary, Championship double League One and so on. It could all be equated with a formula dependent upon how much sponsors were willing to pay. Teams like Wolves should be the driving force, knowing Prem teams can see themselves in League One very quickly so hoarding all the cash isn’t just selfish it’s also dangerous and could result in more teams going bust.

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