Top flight clubs bounce back from Covid but challenges remain in lower leagues - BDO
English Premier League clubs appear to have bounced back from Covid-19, but lower league clubs continue to face financial challenges, according to a new report published today by accountancy and business advisory firm BDO.
In its latest survey of football club finance directors from the top four English leagues, 71 per cent of respondents from Premier League clubs said that their financial position was “very healthy ”, compared to just 29 per cent in 2021.
However, this compares to just 18 per cent for Football League Championship clubs and 33 per cent of clubs in Football Leagues One and Two.
Fifty-five per cent of Championship and a quarter of League One and Two clubs surveyed admitted their finances were ' ”in need of attention ”.
While approximately three quarters of clubs across all leagues expect to make a loss before player trading in 2021-22, there was a significantly lower proportion of clubs in this category in the EPL compared to other leagues.
When asked about the biggest concerns for the year ahead, clubs in the EFL were most concerned about the impacts of cost of living increases on match attendance.
The most significant concern for Premier League clubs was lack of control over player costs.
BDO 's report found that English football is continuing to attract overseas interest with 75 per cent of enquirers being non-domestic, particularly from the US, with potential investors particularly focused on Premier League and Championship clubs with strong brands.
Meanwhile, football club shareholders seeking full or partial exits is significantly higher than last year (43 per cent in 2022 versus 22 per cent in 2021) which suggests a growing appetite for M&A and an opening of the doors to US for full or part ownership.
The report also examines the prospects for women 's football. While England 's win at the Women 's Euros resulted in record attendance and viewing figures, all clubs surveyed said that their women 's football activities are currently loss-making.
However, 60 per cent said that they had a specific investment strategy for women 's football, and 30 per cent said that further investment in women 's football was one of their key strategies for growth.
Ian Clayden, head of professional Sports at BDO, said: “While overall financial health is improving in the English professional game, the speed of recovery is uneven across the leagues.
“Many clubs within the English Premier League have recovered to pre-Covid levels with opportunities for growth outweighing current financial threats. The opposite may be the case for clubs in Football Leagues One and Two who are having to closely monitor and control every penny.
“However, it 's Championship clubs that appear to be under the most financial pressure, spending above their means either in pursuit of the holy grail of promotion to the EPL or to avoid relegation. ”
Sandi Dosanjh (pictured), a BDO partner who plays an active role in women 's football, added: “Many clubs are now looking at new growth opportunities. England 's recent win at the Women 's Euros has sparked real excitement at the prospects for the women 's game but the challenge now is how to monetise this enthusiasm in a way that is attractive to investors but also protects athletes ' and fans ' enthusiasm and passion for the sport.
“While there is clearly huge potential for growth, we 're still at the beginning of the cycle, so clubs investing in women 's football may need to be patient to achieve a direct financial return. ”
The full report is available to download here.