A critical financial analysis of Premier League football club accounts
Cardiff Metropolitan University
MetadataShow full item record
"Modern commercialised sport has become a 'multi million' dollar industry," (Home et al,1999,p.259), to which football in the UK has been at the forefront since the formation of the Premier League in 1992. Football has undergone a transformation period, which has seen a huge boom in popularity, commercialisation and an increasing emphasis on advertising. Football is strongly considered to be a wealtþ industry, accentuated by the huge transfer fees for and wages paid to players. Recent financial reports suggest that this prosperity has become a mirage and a restructuring of the industry is required. This claim is questioned through the financial analysis of six Premier League accounts, using the application of accounting principles. The findings of this analysis served as the basis for two interviews with financial advisors to Premier League clubs. From both sets of data collected it is indicated that the survival of clubs is dependent on a restructuring of the football club business model, increasing the diversification of turnover. Clubs have secured large loans through the selling of future ticket sales and commercial income, with which several are struggling to meet repayments, prompting financial advisors to call for sensible control to be exercised. Recent developments have seen shorter contracts, with in built adjustments for relegation, while in the future ground sharing, performance related pay and salary caps could all be viable and necessary options.
BSc (Hons) Sport, PE and Recreation
Showing items related by title, author, subject and abstract.
Football Golf – To examine the feasibility of setting up a 'Football Golf' skill development kit business in Cardiff. Ballagher, Thomas (University of Wales, 2011-11-04)The aim of this enterprise project is to evaluate the feasibility of setting up a 'Football Golf' skill development kit business in Cardiff. Football Golf is a new and exciting football skill development proposal which ...
Iorwerth, Hywel; Tomkins, Paul; Riley, Graham (Taylor and Francis, 2017-08-07)Whilst the relationship between money and success in elite sport is acknowledged, the exact nature, extent and implications of this relationship is one that has not been carefully examined. In this paper we have three main ...
American title IX sports legislation law: implications for the development of UWIC women's football club Green, Warren Anthony (Cardiff Metropolitan University, 2001)The purpose of this study was to determine if an American Sports Legislat(ve Law could be applied within the University sports environment of Britain. The study involved the analysis of Title IX, an equality of opportunities ...