The Premier League is papering over the cracks in English football

By Mike Tuckerman / Expert

Liverpool’s 3-1 win over Arsenal at Anfield was thoroughly entertaining but the Premier League’s success is masking some big problems within English football.

Let’s start this one from left field. How good was Coventry City’s 1-0 win over Gillingham in League One on Saturday?

It was an important early-season win for everyone connected to the club. Except, of course, local fans who happen to live in Coventry, because the Sky Blues aren’t playing their home games at a 32,000-capacity Ricoh Arena that was purpose-built for them.

Instead they’re hosting games more than 30 kilometres away at Birmingham City’s home ground St. Andrew’s.

Why? It’s a long story.

David Conn spells it out neatly for The Guardian and points out this is the second time in five years the club’s hedge fund owners Sisu have forced Coventry City to play home games miles away from their actual home.

It’s not like all this has gone down without protest. The Coventry Telegraph’s #bringCityhome social media campaign was short-listed by the British Press Awards for the Campaign of the Year in 2014.

But despite the local newspaper’s vocal campaigning and the visceral anger of Coventry fans, it all seems to be futile as long as Sisu retains control of the club.

And as strange as the situation seems in Coventry, Sky Blues fans might still consider themselves lucky to have a club to support at all.

Because in Lancashire, fellow League One combatants Bolton Wanderers and Bury FC could both go out of business for good this week.

Separated by a distance of less than 20 kilometres, the two are neighbours in geography if not necessarily recent circumstance.

Bolton were in the Premier League as recently as 2012, but a handful of relegations and debts of more than $AU300 million saw them almost wound up in December 2015.

The situation hasn’t improved since and the club went into administration last season over an unpaid tax bill, meaning they started the new campaign with an automatic 12-point reduction.

Players have gone weeks without being paid, a league fixture against Brentford was forfeited last season and there were even reports some players were relying on food bank donations just to survive.

The situation is similarly dire down the road at Bury, who have spent the past decade bouncing between the third and fourth divisions.

(Photo by Dave Howarth/PA Images via Getty Images)

They too have suffered severe financial problems in recent years, prompting businessman Steve Dale to buy the club for a pound in December 2018.

Stricken by debt and with the English Football League demanding proof that Dale had the funds to run the club for a full season, Bury should have been celebrating an improbable promotion back into League One.

Instead, they’ve had all their early-season fixtures postponed as the EFL continually seeks assurances that the club is actually solvent.

Dale supposedly sold the club over the weekend – he reportedly turned down an earlier offer “in search of a better deal” – however Bolton’s 12-point deduction and Bury’s inability to even play matches has wreaked havoc with the fixture list.

It’s prompted the Bury-born former Manchester United and Everton star Phil Neville, whose mother and late father both worked for the Shakers, to call the situation “a disgrace”.

But with Premier League giants Manchester United and Manchester City vacuuming up most of the local support and fellow Lancashire clubs like Blackburn and Blackpool having their own ownership dramas, it often feels like the list of lower-league problems is never-ending.

That’s before you factor in a club like Salford City, who have rocketed into the Football League on the back of investment from a group of Manchester United Class of ’92 players like one Phil Neville.

If these are local problems with local solutions, then the global appeal of the Premier League isn’t doing much to help.

And while clubs spending beyond their means is nothing new, going out of business after more than a hundred years of existence most certainly is.

Here’s hoping Bolton and Bury can both survive the week. Because without the clubs, there’s no football to support.

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The Crowd Says:

2019-08-29T23:21:37+00:00

Kannga2

Roar Rookie


Simoc A lack of sympathy for other people shows your own stance But what if it happened to you .. .maybe some dodgy entrepreneurs might take over your favourite club and send it out of business or maybe it will happen in your workplace and you won’t get paid for months and you would lose your house ( a lot of these players are young kids who are not being paid at all , they are not megastars . A better society does care about these things .

2019-08-27T22:37:45+00:00

Buddy

Roar Rookie


It is hard to pick exactly what will light up a discussion and generate debate. It could just be the time of year I suppose?

AUTHOR

2019-08-27T22:02:22+00:00

Mike Tuckerman

Expert


Strangely enough, a lot more people read this one than the previous column on the FFA Cup. So I think the interest is probably still there.

2019-08-26T10:16:30+00:00

Buddy

Roar Rookie


Judging by the lack of responses, I’d be inclined to suppose that English Premier League or lower leagues are not really subjects of much interest on this site. The struggle for survival in the lower divisions is similar to life on the African Savannah for many species, reliant on good rain to survive and without much help from the Apex predators. Many clubs survive on a shoestring budget and you sense that any one of many could topple over at any time. Yet somehow this particular species of animal survives each season and the cycle (unattractive as it is) continues.

2019-08-26T07:32:20+00:00

Simoc

Guest


Doesn't sound to bad. You've highlighted bad business practice and probably bloated egos come into it in a high profile sport. But less teams isn't necessarily worse. They have history and if someone with wads of money wants to unload it, just join the football business, or buy an expensive yacht, which gives you no fame and less grief. History is just that. We move on regardless.

2019-08-26T06:48:59+00:00

Joshua Kerr

Roar Guru


Actually there's been a fair amount of coverage of this in the UK. You've just got to know where to find it. I live in Worcestershire so our local BBC News covered the Coventry City problems, following the story all the way to the bitter end. Plenty of newspapers and broadcasters are covering Bury and Bolton's troubles as well. As a side note, Sky and BT show the top five English leagues between them (PL, Championship, League One, League Two and the National League).

2019-08-26T03:53:52+00:00

Gary Andrews

Roar Rookie


Interesting comments Waz and Mike. Is it the EPL’s fault? Not directly. Is it the EFL’s fault? Partially. Is it the FA’s fault? Some responsibility, yes. Is it the owners’ fault? Again, partially. But it’s a lot more complex than simply saying the EPL have nothing to do with the woes of lower league or that it’s simply bad ownership or overspending. In Bolton’s case, it very much does stem from the Premier League days, when they run up close to £300m in debt. However, a large amount of that was to the owner, the late Eddie Davies. Davies wasn’t a bad owner, but once he decided he wanted to sell up after Bolton’s relegation started, then the problems began, even after Davies wrote off £125m. Subsequent owners just didn’t have the capital. It’s the biggest danger when it comes to wealthy benefactors / groups. The cost of building and maintaining a club that’s remotely capable of challenging for a place in the Premier League - there’s increasingly fewer individuals, companies or consortia willing or able to invest (Crystal Palace have been up for sale for ages without a sniff of interest). But with the lure of Premier League riches, you do tend to attract a certain type of individual who is willing to gamble irresponsibly in the hope of making it back with TV money (and if they do, that’s no guarantee of stability - look at Blackpool for example). Secondly, parachute payments from the Premier League can disproportionately affect budgets from Championship downwards. They already give the relegated clubs somewhat of an advantage and the EFL (not EPL, in fairness, although it is one body sorting out another’s issues) does very little to reign them in, so you have an unsustainable amount spent on wages in relation to turnover. There is a cap of sorts, but if you flaunt it and get promoted, there’s little comeback and the reward outweighs the punishment. Thirdly, a lot of clubs are receiving a lot less for young players due to changes in academy rules and compensation. Players such as Ethan Ampadu, for example, would have reached a much higher value but Chelsea were able to acquire him from Exeter City for a much lower sum. Finally, on bad owners, this is definitely an EFL and FA issue that they seem to be reluctant to take. The Bury mess, in particular, is one partly of their own making - especially as the financial situation would have been known at the AGM in June. There’s a reluctance to tighten any framework for owners or enforce what few rules do exist. Steve Dale, for example, was allowed to purchase Bury without the EFL following their own procedure. And finally, once you get to the stage that Bury are at it becomes less about overspending and more about something less pleasant. Previous owner Stewart Day did indeed overspend, and when his business went under, it was inexorably linked with Bury. Had Day opted to put Bury into administration, it would probably have survived. Dale, on the other hand, is specialist in making money from distressed companies and after purchasing the Shakers for £1 from Day has taken Bury into their current situation not by overspending but by not spending anything at all. Lots of issues around this that I won’t get into in the comment to prevent the moderators from legal headaches but I’d recommend reading Accrington chairman Andy Holt’s Twitter feed and Ian King’s 200% blog. Both are very good at giving context to this.

2019-08-26T03:34:34+00:00

Chopper

Guest


Kannga2 Coventry's case is indeed a long story and started after they got relegated from the Premier League. Too many players had no relegation clauses in their contracts and the parachute payments were almost non existent. The sale of the Ricoh Arena to Wasps would come under much more scrutiny in Australia. There was a sweetheart deal done with Wasps that gave them a 100year lease over the stadium at a peppercorn rent. Sisu the company owning Coventry City took the council to court and lost, they appealed and lost and have now lodged it in a European Court in regard to alleged corruption within Coventry Council. Because this went against the grain with Wasps they are refusing to enter into negotiations with Coventry. It is a sad state of affairs when the stadium was built for Coventry City and between the council and Sisu (who are as bad as each other) the fans have to suffer. Meanwhile the team is unbeaten this year with three wins and a draw and long may it continue.

AUTHOR

2019-08-26T02:19:01+00:00

Mike Tuckerman

Expert


I’m not suggesting the EPL is to blame for lower-league mismanagement - although Bolton’s desperation to return to the top-flight is a factor in their case - but I do think there’s a general lack of concern for what’s happening in the lower divisions. That’s understandable in a place like Oz where our ‘support’ isn’t going to make much tangible difference anyway, but I do think the next issue English football will need to deal with is a generation of fans who don’t care about their local club because they’re already fans of one of the big six.

2019-08-26T02:09:59+00:00

Kannga2

Roar Rookie


The financial bubble that soccer lives in will eventually come crashing down . It’s at an unsustainable level, or at a level that only a dozen wealthy oil sheiks can maintain until they find another hobbie. There is not going to be a trickle down effect of wealth from the Manchester city type clubs and the gap will widen between rich and also rans to a really boring uncompetitive level in the epl Coventry propably should not have sold the old highfield road , but I can’t remember the whole story , but they’ve been very unlucky with owners and apparently the owners sold their new ground to a rugby union club wasps Anyhow, it’s 40 minutes on the train from Coventry to St. Andrews in Brum and it’s a terrific 30,000 seat stadium .

2019-08-26T00:45:43+00:00

Voice of Reason

Roar Rookie


I see the same issue emerging in regards to the AFL and the WAFL clubs - in a couple of years, we'll likely have a Fremantle Dockers reserve side and a 10 team competition, which means one of the traditional clubs will go to the wall or have to merge. Arguably there are too many clubs in England for the population, but when you look at non-league as well (and the National League is effectively the 5th Division now), I'm surprised more clubs haven't failed. So the solution is to send more TV money down the pyramid (in AFL and EPL) to make sure that the grass roots of the game are protected. But I also take Waz' point that there is only so much that can be done. You can't insulate clubs against bad business practice/asset-stripping any more than you can every business/company in an economy. Regulation & fit and proper tests can only achieve so much - though they could step in a lot earlier if a Tax debt is unpaid. If it's your club - and soon it will likely be mine - it would be terrible.

2019-08-25T23:03:25+00:00

Waz

Roar Rookie


I personally don’t see the link to the EPL here? The failure of several lower league clubs is not down to the success of the top flight! As Fadida correctly points out - perhaps they need to spend more time looking at how the lower league clubs are run and who is running them rather than blaming the EPL. Bury and Bolton failed because they were badly run, if they had more money they would still have failed ... because they are badly run. How they can allow massive debt with their tax office to build up I don’t know. If club owners can’t meet their tax obligations, pay their staff wages, then it’s simple ... strip owners of their ownership - watch how well run clubs are then instead of this sham that is stuck on the rinse n repeat cycle. There are lessons for the independent HAL which we should understand - owners care for their clubs until they don’t, then we get the Tinkler effect. Safeguards need to be built in to protect clubs from imploding and disappearing forever, but even then - there’s only so much that can be done.

2019-08-25T22:02:29+00:00

Jumbo

Guest


Great article, Mike. It’s amazing how little coverage this issue has got in the UK press. The media obsession with Premier League glitz is causing them to overlook the terrible situation of some proud old clubs.

2019-08-25T21:55:02+00:00

Fadida

Roar Rookie


Unfortunately it's a scene played out many times over the years. Clubs spend what tbey don't have (Bolton), or sell to dodgy owners (Bury, Blackburn etc) whose plan is to asset strip the club, or just lack business acumen. I would have thought Bury's debts would be fairly minimal ie a few million , and that most premier league footballers could easily afford to buy them and save the day. Perhaps lower division clubs need the safety of a salary cap? Not to mention a better ownership test

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