Chelsea, Derby and Middlesbrough fall under spotlight in new report
FAIR Game today published a 36-page report on the owner/benefactor model in English football. Written by football experts Aaryaman Banerji, Adam Davis and Joshua Price, the report entitled This Could Be Our Year, concluded that there are three main red flags that a new Independent Football Regulator should be on the lookout for:
Clubs spending unsustainably, particularly if they are spending a high percentage of their revenue on wages. UEFA currently have a revenue/wage cap at 60%, which is a sensible starting point that is struggling to be met by English clubs;
The Owner-Benefactor becoming unable or unwilling to maintain the financial commitments required of owning the football club, leading to administration or liquidation; and
When clubs need to achieve a certain target to avoid falling into a potentially terminal situation, such as chasing promotion.
The report focused on three clubs – Chelsea, Derby County and Middlesbrough.
The report is the first in a series commissioned by Fair Game looking at the pros and cons of various models of football ownership.