Fear for Man Utd, Liverpool, Chelsea and Spurs at cost of life crisis

According to a new study, Arsenal ranks best among the top six clubs to face an economic downturn. All other top clubs show signs of weakness when it comes to avoiding major economic shocks, according to a new study.

Chelsea in particular may soon be facing a financial nightmare. While the UK economy doubled between 1993 and 2018, the wealth of Premier League football clubs has multiplied by 30.

Many of these have become global franchises, attracting hundreds of millions of fans, and making an ever-increasing contribution to the UK economy. But clubs are usually a major source of income and highly dependent on key individuals, which can leave them exposed to financial shocks.

Now researchers from the University of Portsmouth have crunched the numbers and identified which clubs need to worry more than relegation. Co-authored lecturer Cristina Filippo said: “Measuring a club’s economic resilience in this way is vital to our understanding of both the stability of the Premier League and its ability to withstand future shocks in an increasingly globalized and competitive industry in the world. To maintain his dominant position in football has implications.”

Annual reports from 1993 to 2018 were analyzed by researchers to see which Premier League clubs were best equipped to deal with major economic shocks. They compared revenue streams from match-day activities such as ticket sales and hospitality.

He also looked at commercial ventures such as sponsorship and the sale of TV broadcast rights in his analysis. The researchers found that the Gunners were the only strong club to see major changes in the broader economy.

While Manchester United and Tottenham Hotspur also proved resistant, they were slow to recover. Liverpool and Manchester City, on the other hand, were hit by economic turmoil but showed strong recovery during the period of growth.

Chelsea were the only ‘Big Six’ club with no flexibility, a worrying prospect given the recent incidents at the club. Outside the top tier, Coventry City and Derby County were the only two clubs to have the financial flexibility, the researchers found.

This may explain why he managed to avoid going into administration despite poor financial conditions, until eventually succumbing in 2013 and 2021 respectively. Birmingham, Sunderland and QPR, on the other hand, were at the bottom of the resilience table.

Aston Villa, Bolton, Newcastle and Ipswich also had weak finances during their time in the Premier League. Co-author Dr Adam Cox said: “While it is easy to accept the general belief that wealthy Big Six clubs are more financially stable than other clubs in the league, our research provides evidence to show that the reality is absolutely is not simple.

“The findings show a lack of economic resilience among the wealthiest clubs and their reliance on external financial resources would put them at risk if the UEFA Financial Fair Play Regulation (FFP) were to be changed. However, such risks may be associated with periods of strong growth in revenues. They are likely to have a huge impact if broadcast revenue growth falters and they can change the EPL landscape over the next 30 years.”

The study could help clubs better cope and recover from economic shocks by helping them to enhance their financial performance and better plan their exit from the recession. Mrs Filippo said: “Even during this time of crisis, where a large number of lower league clubs were facing bankruptcy, the EPL still managed to exceed financial expectations compared to other industries .

‚ÄúDespite this flexibility, there are clear differences between clubs. This became clearly evident during the COVID-19 crisis (which was outside the period when the data was collected), where many EPL teams clarified that they were struggling financially, or acted in such a way as to demonstrate that the financial pinch was being felt.”

The findings were published in the journal Soccer & Society.

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