Discover and read the best of Twitter Threads about #wafc

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I published a study last week on where Premier League clubs source their money and what they spend it on by reviewing the clubs’ cash flow statements over the last decade. Today I do a similar exercise on Championship clubs – where the picture is very different.
In the 10 years between 2008 and 2017 Championship clubs had over £2.8 bln of available cash with the vast majority of financing £2.5 bln coming from their owners (loans £1.9bln and shares £0.6 bln)
So an incredible 87% of Championship clubs’ cash came from owner financing with just 7% from operating activities. This is in stark contrast to the Premier League with 54% from operations and 42% from owners. There was also £41m from (net) player sales & £45m from bank balances.
Read 22 tweets
Parachute payments are made to clubs relegated from the Premier League in order to soften the blow of the significant reduction in revenue in the Championship, especially as many players’ wages remain at a high level. The following thread looks at how these payments work.
It is evident that parachutes have a major impact on the competitive balance in the Championship, as the 6 clubs with the highest revenue in 2016/17 all benefited from these payments, most notably the 3 relegated the previous season: #NUFC £86m, #NCFC £75m & #AVFC £74m.
Eight Championship clubs received Premier League parachute payments in 2016/17 with #NUFC, #AVFC and #NCFC getting £41m (up from £26m in 2015/16 thanks to the new TV deal), followed by #QPR £31m, then #CardiffCity, #FFC, #Royals & #WAFC, all £16m.
Read 14 tweets
Although the 2016/17 financial results for the Championship are now a season out-of-date, they are the most recent published by the clubs, so people might still be interested in the comparisons as the new season kicks-off. Some thoughts in the following thread.
In contrast to the Premier League, only 6 clubs in the Championship made money, led by #NFFC £32m & #BarnsleyFC £13m. In this very competitive division most clubs over-extend in a bid to reach the lucrative top flight. Largest losses at 2 promoted clubs: #NUFC £47m & #BHAFC £39m.
Some clubs’ figures impacted by significant exceptional items, so #NFFC (£40m) and #ReadingFC (£9m) were boosted by loan write-offs. In contrast, promotion bonuses adversely affected #HTAFC £12m, #NUFC £10m and #BHAFC £9m. Newcastle also booked £22m onerous contract provisions.
Read 26 tweets

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