Thursday, 2 June 2016

Deloitte Annual Review of Football

While Charlton fans are waiting for our new manager to be appointed, I thought it might be worthwhile pointing out that the accounting firm Deloitte have issued their Annual Review of Football Finance, a summary of which can be found here  :-

I wrote about the Financial Fair Play implications for Charlton falling down to league one in this blog a short while ago and the latest Supporters Trust newsletter also has an article on the subject.  The key point is that clubs in this division are subject to a Salary Cost Management Protocol (SCMP) player wages must be no more than 65% of turnover (there are of course plenty of exceptions for newly relegated clubs, definition of turnover etc).  See more on this topic here:-

The task of complying with those rules is shown clearly on page 26 and 27 of the Deloitte summary.  It shows total League One revenues to be less than a quarter of the Championship.  Despite the SCMP, wages in League One breached the cap but this may be down to the exceptions from larger clubs such as Wigan dropping down and does not necessary signify a breach.

The challenges for Charlton Athletic are huge and the delay in announcing a new manager cannot help the situation.



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1 comment:

  1. Good stuff, I'd only point out that clubs are not forced to comply with the FFP rules, only that they are fined if they do not. Bournemouth drove a coach and horses through them, got prompted, paid the fine, and are now milking it. Complying with FFP is a policy decision.