Football Report 2015

INVESTING FOR SUCCESS:
FOOTBALL FINANCES AND

COMMERCIAL GROWTH
The Annual Survey of Football Club
Finance Directors 2015
CONTENTS
EXECUTIVE SUMMARY
02
METHODOLOGY AND SAMPLE PROFILE
03
ANALYSIS OF FINDINGS
04
BDO PROFESSIONAL SPORTS GROUP
36
FOREWORD
At first sight, many of the results that we have
seen from this years Annual Survey of Football
Finance Directors were somewhat surprising:
87% of clubs rate their current financial
position as healthy or not bad yet only
40% of clubs expect to make a profit
before player trading and amortisation
in their next accounting period. In fact,
the reality is quite polarised as 9 out of
10 English Premier League clubs expect
to make such a profit, whereas those
expecting to make a profit fall to as low as
12% in the Championship and less than a
third in Football Leagues 1 and 2. When
taking player trading into account, no
Championship clubs expect to make a profit
and Premier League clubs expecting to
make a profit falls to 6 out of 10
Financial Fair Play is largely embedded
within English football (with 98%
compliance in 2014/15, with an expectation
to continue in 2015/16), yet 65% of clubs
remain dependent on their principal
shareholder (up from 60% in 2014) for
financial support
In the context of a stable domestic
economy where consumer confidence
has been relatively high over the last 12
months, the impact of economic conditions
on non-media football club revenue
streams has been very limited and shown
no real positive trends. Expectations for the
2015/16 are on balance optimistic but not
significantlyso
On balance, outside of Football League 2,
clubs are experiencing increasing revenues
from commercial contracts (such as
sponsorships), yet only 10% of clubs are
finding suitable sponsors easier to find.
However, for the Premier League, in the

context of a 2.1bn increase in the collective
domestic TV rights revenue for the 2016/19
contract period, along with an expected 1bn
increase in international TV rights, these
results make much more commercial and
sportingsense.
The new 5.1bn Sky and BT Sport 3 year
broadcasting rights deal, commencing 2016/17,
represents a 70% increase on previous
arrangements and will add an average of
around 35m in revenue per Premier League
club. Remarkably, even the club finishing
bottom will earn just shy of 100m in TV
revenues in 2016/17. With a cap on player
salary growth of 4m per year, thanks to Cost
Control and Sustainability rules (commonly
referred to a Financial Fair Play, or FFP, rules),
and enhanced parachute and solidarity
payments filtering down through the leagues,
the prospect of sustainable profitability for
clubs in the Premier League, and to some
extent the Championship, appears to have
prompted clubs to invest in player transfers
and, where possible, wages, in order to either
gain promotion or avoid relegation.
63% of clubs have an increased first team
squad budget for 2015/16; twice as many
Premier League clubs have increased their
transfer budget compared to the number
that have reduced it; there has been no net
reduction in transfer budgets within the
Championship or Football League 2, and
virtually no reduction in Football League 1
Loss of income through relegation is the

primary concern for football clubs and clubs
have increased numbers of contracts with
relegation clauses 2/3 say that over 50%
of contracts have relegation clauses.
There is now potential for a step-change in
the financial landscape for football clubs, in
particular those in the Premier League. With
the stabilising impact of FFP coupled with
the sheer scale of media rights we may see a
more traditional business model develop in the
higher leagues with sustainable profitability,
positive cash flows, investor returns (!) and
enhanced value for money for the paying
general public.
2/3 of Premier League respondents believe
that Premier League clubs should reduce
ticketing prices in order to provide increased
value for fans
Improved financial stability may also lead to
the Championship becoming the breedingground for talented home-grownplayers.
We are seeing high levels of support for
Greg Dykes proposals to increase the
required number of home grown players
100 % of Championship clubs are
forecasting increased (53%) or unchanged
(47%) investment in youth development.
CHARLES BARNETT and IAN CLAYDEN
02 FD FOOTBALL SURVEY
2015
EXECUTIVE SUMMARY
financing the club

The financial health of football leagues
continues to improve with 45% of
respondents rating their financial position
as very healthy up from 33% in 2014.
Just under a quarter (23%) of EPL and 27%
of FL1 respondents say that their clubs
owners are considering a full or partial exist
within the next 12-18 months, representing
marginal increases. Only 6% of FLC clubs
are considering a full or partial exit.
A quarter of respondents are aware of an
informal or formal approach from potential
equity investors over the last 12 months,
broadly in line with 29% lastyear.
club revenue and profitability trends
Just four out of ten (40%) respondents
expect to make a profit before player
trading and amortisation in their next
accounting period. Unsurprisingly, given TV
rights values and wage control restrictions,
92% of EPL expect to make a profit. By
contrast only 12% of FLC respondents
expect to make a profit before player
trading and amortisation. However, given
the high levels of FFP compliance (98%),
anticipated losses appear to be within
acceptable limits.
Only 27% of respondents expect to make a
profit after player trading and amortisation
in the next accounting period. This is
a significant fall from the 2014 results
when 40% expected to make a profit.
Given the optimism that surrounds the
new TV deal, these is an unusual result
although it is likely that it represents an
expected increase in transfer activity and
squad strengthening in anticipation of the
additional monies coming the clubs way
from 2016 onwards. However, with the new
wage controls in the EPL biting we would
expect this to be a much higher percentage
in future years as the new deal flows to the
bottom line. All FLC clubs expect to make
a loss after player trading and amortisation
- we suspect this is due to investing for
promotion in anticipation of increased TV
revenues.
Contrary to 2014 optimism of a

strengthening economy, no impact has
been the most common response with
regard to the impact of the economy on
non - media revenue streams such as
tickets, merchandising, catering and so on.
Finance directors are more optimistic that
revenue streams will improve next season
than they were last year. However, this
optimism is guarded.
Six out of ten respondents do not get

involved in tax enquiries relating to agent
fees and image rights payment considering
them to be largely a player matter.
Although 62% of EPL FDs believe ticket

prices should be reduced to share the
prosperity of the league with its most
important stakeholders more than half
(54%) of all finance directors do not think
that EPL clubs should reduce their season
ticket and match ticket pricing in 2016/17.
This reflects concerns from some of the
FL clubs (in particular FLC) that lower EPL
ticket prices will have an adverse impact on
their attendances or result in calls for their
prices to also be reduced.
financial fair play
There is little appetite for a summer football

programme with less than a quarter (23%)
of respondents in favour of its introduction
to the UK football calendar. Only around a
fifth of respondents believe that summer
football would have a positive impact on
the sale of tickets, TV income and retail,
hospitality and catering.
club operations
The top three concerns continue to be
loss of income due to relegation, falling
match attendances (albeit not for EPL),
and inflexible players salaries. Falling
attendance is a concern for FLC clubs for the
first time.
Three quarters of respondents are confident
that their tax position on image rights
payments, employee benefit trusts and
other third party income is robust and
defendable a slight overall drop from 82%
in 2014. EPL respondents confidence has
risen from 57% to 77% this year.
Only 15% of respondents were late with
their tax payments during the year. Of the
nine FLC and FL2 clubs who had been late,
five of them had formally agreed the delay
with HMRC.
HMRCs campaign to stamp out aggressive

tax avoidance schemes is not an issue for
85% of respondents who say that their club
has a conservative view on tax planning
arrangements.
All but one club in the survey said they

complied with the requirements of the
applicable FFP and sustainability rules last
season. For FLC clubs, FFP compliance is
now the third highest concern for the first
time.
Levels of compliance with fair play rules
continue to rise up from 91% in 2014 to
98% this year.
The vast majority (89%) of respondents
believe that FFP rules are broadly workable
as they currently stand. Only a handful of
EPL and FLC clubs disagree.
More than seven out of ten (73%) of
respondents agree that the structure of the
FFP rules are appropriate for their league
up from 56% in 2014.
Almost nine out of ten (87%) of
respondents feel well represented by their
league regarding the FFP rules. This rises
to 93% of FL2 and 100% of FL1 and SPL
respondents.
More than half (58%) of finance directors
believe that the FFP regulations meet the
objective of promoting sustainability, up
from 38% in 2014. 70% of EPL finance
directors now believe this compared to just
14% in 2014. However, only one in four
Championship Finance Directors believe
this to be the case, unsurprising given the
level of concern (third highest category of
concern for FLC clubs) and known levels of
non-compliance.
Four out of ten (53%) respondents
believe that the FFP sanctions are being
appropriately enforced, although views on
this were very much mixed. Leagues will
have more to do to win the confidence of
Financial Directors in this area.
2015
player costs, transfers and youth

development
More than six out of ten (63%)
respondents have a higher budget for youth
development next season. This rises to 77%
of EPL clubs. No clubs have reduced their
youth development budget. With EPPP
being the principal reason for this, this is
clearly welcomed by clubs.
Almost two thirds (62%) of respondents
say that more than half of the players in
their senior squad have clauses in their
contracts stipulating that their wages will
be cut if the club is relegated. However,
given the financially destabilising impact
this can have on relegation, these results
are surprisingly low and we would expect
to see this increase. We would also expect
the level of reduction to continue to
climbupwards.
More than four out of ten (41%)
respondents will be spending more on first
team payroll next season. As in 2014, 70%
of EPL respondents will be spending more
while a greater percentage of clubs across
the other leagues will also be increasing
their budget. [Interestingly, half of FLC and
FLI clubs will be spending less, indicating a
growing polarisation between the leagues.]
The percentage of clubs cutting payroll
budgets continued its downward trend this
year to 35% down from 40% in 2014 and
56% in 2013.
Just over half (47%) of respondents are
maintaining the level of their transfer
budget this year, while one quarter will
be reducing it, and another quarter will
be increasing it. The percentage of clubs
reducing their transfer budget has fallen
over the last three years from 44% in 2013
and 27% in 2014. For those clubs reducing
or freezing their transfer budget, only a
handful cite FFP as the driver forthis.
FD FOOTBALL SURVEY 03
methodology
BDO UKs Professional Sports Group
commissioned an independent researcher
in May and June 2015 to undertake
structured telephone interviews with
finance directors of football clubs.
A total of 60 interviews were completed
with finance directors in the English
Premier League (EPL), English Football
League Championship (FLC), Football
Leagues One (FL1) and Two (FL2) and the
Scottish Premier League (SPL).
Throughout this survey, results are
presented as column percentages
rounded to the nearest whole and
arithmetic means, unless otherwise
stated. League abbreviations are used in
the report to aid brevity.
profile of sample
league
English Premier League
Football League Championship
Football League 1
Football League 2
Scottish Premiership
number of clubs
13
16
11
16
4
More than half (54%) of Finance Directors

agree with the recent changes in agent
regulations but there is a variance
between the leagues with just 30% of EPL
respondents in agreement compared with
69% of FLC.
governance and propriety
Two thirds of clubs say that the level of
public interest in their clubs leads them to
manage the club with heightened corporate
governance compared to similar sized
companies outside of the football sector.
% respondents in league
65%
66%
46%
66%
33%
Two thirds of respondents do not think

that the FA or SFA have any authority or
mandate to change the structure of league
football. This includes three quarters of FL1
and FL2 respondents.
Almost two thirds (62%) are in favour of
the English FA Commission proposals for
home grown players and work permits. But
only 38% of EPL respondents are in favour
compared with 88% of FL2 and 75% of FLC.
Half of respondents do not think these
proposals will have any financial impact on
their club and only 18% think they will have
a positive financial impact.
2015
analysis of findings
01: FINANCING THE CLUB
1. How would you rate your clubs current financial

position?
%
ALL LEAGUES
EPL
Very healthy
45
77
31
Could be better but not bad
42
15
63
In need of attention
10
A cause for grave concern/on

the verge of administration
FLC
FL1
a grave cause
for concern
3%
FL2
SP
55
25
50
36
44
50
25
Base: 60
The financial health of football leagues

continues to improve with 45% of
respondents rating their financial position as
very healthy up from 33% in 2014 but
there is a wide gap between the leagues.
More than three quarters (77%) of EPL
respondents cite good health compared
with only a quarter of FL2 and less than a
third (31%) of FLC respondents. The financial
health of a quarter of FL2 respondents
needs attention and a further 6% are of
graveconcern.
More than four out of ten (42%) respondents

say that their finances could be better but
are not bad the same percentage as 2014.
The results of our survey show that 10%
of clubs with finances in need of attention
and 3% being a cause for grave concern is
a continued improvement on 16% and 9%
this time last year. This is consistent with a
general theme of improved financial health
within the football industry in England
andScotland.
87%
very healthy;
could be better
but not bad
10%
in need of
attention
2. Is your club dependent on the principal shareholder(s)

to finance annual revenue shortfalls or operating
losses?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
65
38
81
64
75
50
No
35
62
19
36
25
50
EPL
SP
38%
50%
an increase
of 9% from 2014
an increase
of 33% from 2014
Base: 60
Two thirds of clubs are dependent on the

principal shareholder to finance losses, up
slightly from 60% in 2014, but the same as
in 2013.
The percentage of EPL clubs dependent on
principal shareholders has risen the most
from just 29% relying on key shareholders
in 2014 to 38% this year. However, this was

50% in 2013.
As expected, shareholder support is still
necessary for clubs trying to progress
through the leagues to the holy grail of the
71% increased EPL TV revenues agreed for
2016-19.
2015
2015
2015
01: FINANCING THE CLUB
3. Has your club used funding from a secondary source

(i.e. not main bankers) secured on any of the following
in the last year?
% OF RESPONDENTS WHO
HAVE USED FUNDING
Advance on media/central
distributions
Advance on season tickets
one year
Advance on season tickets
two or more years
Player transfer fee receivables
Other receivables
ALL LEAGUES
Yes: 10
No: 90
Yes: 2
No: 98
Yes: 0
No: 100
Yes: 7
No: 93
Yes: 3
No: 97
EPL
23
77
0
100
0
100
0
100
0
100
FLC
12
88
0
100
0
100
6
94
0
100
FL1
0
100
0
100
0
100
9
91
0
100
FL2
6
94
6
94
0
100
12
88
12
88
10%
SP
0
100
0
100
0
100
0
100
0
100
of all
respondents
(and almost
a quarter
of EPL
respondents)
have used
funding from
a secondary
source
secured
on media
or central
distributions.
Base: 60
As in previous years, hardly any clubs have

used funding from a secondary source
secured on advances on season tickets or
other receivables. However, 10% of all
respondents and almost a quarter (23%)
of EPL respondents have used funding from
a secondary source secured on media or

central distributions. This is typically mainly
low risk, short-term funding, principally
used in the summer in advance of first
tranche league (TV) revenues being received
inAugust.
4. Are the current owners of the club considering a full or

partial exit within the next 12-18 months?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
17
23
27
12
25
No
83
77
94
73
88
75
Base: 60
This years results are again similar to those

in previous years with only 17% of owners
considering a full or partial exist within the
next 12-18 months.
This rises to 23% of EPL and 27% of

FL1respondents.
21%
2014
23%
2015
EPL respondents who believe that

their owners are considering a
full or partial exit in the next 12-18 months
2015
5. As far as you are aware, within the last 12 months has

the club been subject to an informal or formal approach
from interested external parties with a view to taking
an equity stake in the club?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
25
30
18
27
25
25
No
75
70
82
73
75
75
Base: 60
6. Has your club given a fixed charge over the stadium as a

security for a loan?
%
ALL LEAGUES
EPL
FLC
Yes
20
30
31
No
80
70
69
FL1
FL2
SP
18
25
82
100
75
A quarter of respondents are aware of an

informal or formal approach from potential
equity investors over the last 12 months,
slightly down from 29% last year. Last year,
41% of FLC clubs had been approached with
a view to taking an equity stake in the club
compared with just 18% this year.
EPL clubs are still an attractive proposition
for new investors, and we would expect
this to continue as these clubs become
potentially profitable businesses due to
enhanced TV revenues.
One fifth of respondents are giving a fixed

charge over the stadium as security for a
loan this year down from 29% in 2014. The
percentage of FL2 respondents has fallen
this year from a quarter in 2014 to none
thisyear.
Base: 60
7. If the club has given a fixed charge over the stadium as

a security for a loan, what was the purpose of the loan?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Build or expand the stadium
Provide cash flow for the club
Base: 12
Of the 12 clubs who have given a fixed

charge, five of these are to fund work on the
stadium, which is a positive step towards
longevity, while seven are to provide cash
flow for the club, which is unsustainable as a
funding option.
2015
02: CLUB REVENUE AND PROFITABILITY

TRENDS
8. Do you expect to make a profit before player trading

and amortisation in your next accounting period?
%
ALL LEAGUES
EPL
FLC
Yes
40
92
12
No
60
88
FL1
profit before
player trading and amortisation?
FL2
SP
27
31
50
73
69
50
Base: 60
Just four out of ten (40%) of respondents

expect to make a profit before player trading
in their next accounting period. The variation
between the leagues has dramatically
increased with 92% of EPL expecting to
make a profit compared with just 12% of FLC
respondents down from 35% in 2014.
This is encouraging for the EPL (up from

86% in 2014), FLI (up from 21%) and FL2 (up
from 19%). However, the outlook for the FLC
(2014: 35%) remains different as the desire
and need for promotion escalates.
40%
92%
50%
31%
27%
12%
ALL
SP
FL1
9. Do you expect to make a profit after player trading and

amortisation in your next accounting period?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
27
62
18
25
25
No
64
15
94
73
75
75
23
Dont know
EPL
FL2
FLC
profit after
player trading and amortisation?
27%
62%
25%
25%
18%
0%
ALL
EPL
Base: 60

do not expect to make a profit after
player trading and amortisation in the
next accounting period. This is a fall in
confidence from the 2014 results when 42%
did not expect to make a profit. However,
almost two thirds of EPL respondents are
anticipating being profitable in 2015/16, up
from 42% this time last year.
All but one FLC respondent expect to make
a loss as do three quarters of FL1 and FL2
respondents.
A distinction needs to be made here

between difficult financial conditions and
investing for growth. We see clubs carefully
managing the losses available under FFP in
order to maximise their investment in their
clubs future. However, not all clubs can be
promoted!
FL2
FL1
SP
FLC
2015
10. What has been the impact of the economic conditions

on the following revenue streams in the current
financial year?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Reduced
28
23
36
27
18
50
No impact
47
63
44
55
44
Improved
25
15
18
18
38
50
Reduced
25
44
19
24
50
No impact
35
46
25
45
38
Improved
40
54
31
36
38
50
Reduced
25
15
32
19
31
25
No impact
43
62
36
45
38
25
Improved
32
23
32
36
31
50
Reduced
25
37
18
18
75
No impact
48
62
50
64
38
Improved
27
30
13
18
44
25
Reduced
28
44
36
18
50
No impact
45
62
44
45
44
Improved
27
30
12
19
38
50
Reduced
18
25
18
19
50
No impact
54
62
56
64
50
Improved
28
38
19
18
31
50
Match tickets
Merchandising
Match day catering
Corporate entertaining packages
Season ticket sales
Sponsorship
Base: 60
compared to previous year expectations
There have been no strong trends in the

impact of economic conditions during FY15.
Against a back-drop of relative positivity
this time last year, this year has been a little
disappointing. The FLC and SP have been
most impacted with reduced revenues being
more common than increases for almost all
revenuestreams.
There is also a wide variation of fortunes
across the leagues and revenue sources. For
example, FL2 has the greatest improvement
in match tickets, corporate entertaining
and season ticket sales, EPL the most
improvement in merchandising and
sponsorship, and 36% of FL1 respondents
reported an improvement in match day
catering revenue.
10
FD FOOTBALL SURVEY
2015

TRENDS
11. What effect do you expect the state of the economy to

have on your 2015/16 revenue streams compared with
the season just ended?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Match tickets
Reduced
17
15
31
10
12
No impact
53
70
44
45
44
100
Improved
30
15
25
45
44
Reduced
15
25
12
25
No impact
47
46
50
37
63
25
Improved
38
54
25
54
25
50
Reduced
13
26
12
No impact
52
70
44
27
56
75
Improved
35
23
30
64
32
25
Reduced
12
19
10
12
No impact
55
54
62
45
50
75
Improved
33
38
19
45
38
25
Reduced
22
32
18
19
25
No impact
45
70
36
18
56
25
Improved
35
23
32
64
25
50
15
19
10
24
No impact
47
38
50
45
44
50
Improved
38
54
31
45
32
50
Merchandising
Match day catering
Corporate entertaining packages
Season ticket sales
Sponsorship
Reduced
Base: 60
Despite patchy results from the 2014/15

season, finance directors are again cautiously
optimistic that revenue streams will improve
next season although there is variation
across the leagues.
The FL1 is the most confident league with
finance directors anticipating the highest
levels of improvement across a number of
revenue streams 45% of them anticipate
improvement in match tickets, corporate
entertaining, and sponsorship while 54% are
confident about merchandising sales and
64% are confident about match day catering
and season ticket sales.
FLC are the least confident with the highest
percentage of finance directors forecasting
reducing sales across four out of the six
revenue streams.
expert commentary
All in all, most clubs expect the economic
outlook to have no impact on revenues,
though more clubs expect an improvement
rather than a worsening of fortunes. The
relative importance of these revenue
streams is falling compared to TV revenues.

2015
12. In light of the substantial increase in the next EPL

television deal do you believe that EPL clubs should
reduce their season ticket and match ticket pricing
in 2016/17 to provide greater value to those fans
attending, notwithstanding that average attendances at
many matches are close to capacity?
%
ALL LEAGUES
EPL
FLC
Yes
38
62
56
No
54
23
44
15
Dont know / no answer

Base: 55
FL1
FL2
SP
38
13
53
81
75
25
FD FOOTBALL SURVEY
11
While more than half (54%) of finance

directors do not think that EPL clubs should
reduce their season ticket and match ticket
pricing in 2016/17 to provide greater value
to those fans attending, almost two thirds of
the EPL respondents agree that they should.
FL2 respondents are the most strongly
against the EPL reducing the price of their
match tickets, most likely based on a
concern that lower EPL ticket prices will
narrow the differential and perhaps attract
more of the FL2 fan-base.
13. Do you believe that summer football should be

introduced to the UK football calendar, (with perhaps
awinter shutdown)?
%
ALL LEAGUES
EPL
FLC
Yes
23
15
12
No
75
85
88
Dont know
Base: 60 *Only in Scotland
FL1
FL2
SP
27
19
100*
64
81
There appears to be little appetite for a

summer football programme with less than
a quarter (23%) of respondents in favour of
its introduction to the UK football calendar.
All SPL respondents believe it should be
introduced in Scotland alone.
12
FD FOOTBALL SURVEY
2015

TRENDS
14. If summer football was introduced in the UK, do you

think it would have a positive, negative, or broadly
neutral effect on each the following revenue streams:
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Match tickets
Positive
22
18
27
12
100
Neutral
27
30
31
27
32
Negative
39
62
37
18
50
No answer
12
18
27
Positive
18
19
27
12
75
Neutral
35
38
37
27
38
25
Negative
39
62
31
18
44
13
27
Season tickets
No answer
Television and other media income
Positive
22
31
18
18
100
Neutral
37
38
44
45
25
Negative
28
31
37
36
No answer
13
13
27
18
Positive
12
75
Neutral
58
62
56
64
63
25
Negative
20
30
25
25
No answer
10
13
27
18
31
38
50
Sponsorship
Retail, hospitality and catering

Positive
Neutral
42
62
24
38
59
25
Negative
30
38
31
44
25
No answer
10
13
27
Base: 60
Only around a fifth of respondents think

that summer football would have a positive
impact on the sale of tickets, TV income
and retail, hospitality and catering and only
12% think it would have a positive impact
onsponsorship.
SPL respondents show the highest levels of
enthusiasm for summer football.
2015
The appetite for summer football in Scotland

is apparent even accepting the relatively
small number of SPL clubs who responded
to the survey. Not only might the quality of
football improve on better playing conditions
but the clubs who generally have to participate
in the qualifying rounds for the Europa League
and Champions League might also benefit from
squads that are better prepared for these earlier
rounds.
In England, the feeling is clear that there is not
sufficient financial incentive to justify disrupting
the current footballing schedule.
charles barnett
partner, professional sports
FD FOOTBALL SURVEY
13
2015

TRENDS
15. Do you use the wages to turnover ratio as a

key performance indicator (KPI) of the clubs
financialhealth?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
58
70
56
46
56
100
No
42
30
44
54
44
Almost six out of ten (58%) clubs are using

the wages to turnover ratio as a KPI of the
clubs financial health up from 49% in
2014. The percentage of FL2 respondents
using the ratio has risen the most from
38% in 2014 to 56%.
Base: 60
16. If yes in which range is your benchmark?

NUMBER OF CLUBS
<50%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
51-55%
12
56-60%
61-65%
>66%
Nineteen clubs have a benchmark of not

more than 55% this year a small increase
on 18 in 2014. There is also a slight increase
in the number of clubs with a benchmark
above 61% up to 12 from 10 last year but
the overall results indicate little change
across the leagues during the last 12 months.
Base: 35
17. What wages to turnover ratio do you currently

operatein?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
<50%
24
33
60
22
51-55%
25
22
20
44
50
56-60%
25
11
61-65%
21
33
13
20
11
25
>66%
21
11
63
25
No answer
43
30
50
54
44
Base: 60
There is a variation between the leagues with

all the FLC clubs operating above 56% while
all FL1 operate below 65%. The EPL clubs
operate throughout the range from less than
50% to more than 66%.
FFP should make wage to turnover ratios
more relevant to FL1 and FL2 clubs.
However, in all clubs, player salaries
(whether as a percentage of turnover or in
absolute terms) and cost control is high on
the agenda.
2015
FD FOOTBALL SURVEY
15
03: CLUB OPERATIONS
18. What is the projected level of your non-player (stadium

and infrastructure) capital spend during the next
twoyears?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
<2.5m
57
16
56
91
69
50
2.5-10m
27
54
19
19
50
10-25m
10
25
>25m-50m
More than 50m
16
Base: 60
These results are broadly similar to the 2014

pattern of investment across the leagues.
More than half of all clubs will be spending

less than 2.5 million on non-player
capital spend over the next two years. This
percentage rises to 91% of FL1 and 69% of
FL2 respondents. The majority (54%) of EPL
clubs will be spending between 2.5m and
10 million.
RANKING OF CONCERNS
EPL
FLC
FL1
FL2
1. Loss of income due

to relegation
2=
3=
1=
1=
3. Inflexible players salaries
4. Ability to attract sponsorship
5. Ability to raise new capital

6. Compliance with financial
fair play regulations
spending less
than 2.5m
(down from 61%)
3%
spending more
than 50m
(down from 8%)
increasing size and standing of our top

stadia.
The percentage of EPL and FLI clubs spending

over 50m has fallen from 22% and 12%
respectively in 2014. However, this is still
significant and consistent with the ever
19. What are your two biggest concerns for your club over
the next 12 months?
2. Falling attendances due to

current economic environment
57%
2=
3=
Base 60: (The numbers 1-3 relate to the ranking of each leagues concerns.)
SP
The top three concerns are once again loss

of income due to relegation, falling match
attendances, and inflexible players salaries.
Falling attendances is a concern for FLC clubs
for the first time.
The overall picture is very similar to that in
2014 with the exception of FFP compliance
which has appeared as a significant concern
for one of the leagues (FLC) for the first time.
16
FD FOOTBALL SURVEY
2015
03: CLUB OPERATIONS
20. Are your revenues from key commercial contracts such

as sponsorships increasing, unchanged or falling?
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Increasing
37
77
31
27
75
Largely unchanged
40
15
56
54
38
25
Falling
23
13
18
56
EP
Base: 60
At the highest level of English and Scottish

football, sponsorship revenues are
increasing. This is not surprising for the EPL
who have global brands.
Progressing down the leagues, sponsorship

income is unchanged (FLC and FL1) or falling
(FL2).
FL
77%
increasing revenues
from key commercial
contracts
6%
increasing revenues
from key commercial
contracts
the polarisation continues
21. Do you think suitable sponsors are:

%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Becoming easier to find
10
23
25
Becoming harder to find
43
54
37
54
64
50
No real change
45
15
63
27
27
25
No answer
Base: 60
Only 10% of clubs are finding suitable

sponsors easier to find. Undoubtedly
sponsors are becoming more demanding and
requiring more creative brand engagement
and activation.
However, where the club/sponsor

relationship is right, there are increasing
revenues available.
Interestingly, no FLC club responding is
finding sponsors easier to find.
43%
9%
FL1
9%
FL2
of all respondents think

think suitable
suitable sponsors are sponsors are becoming
becoming harder to find
easier to find
2015
22. HMRC has major on-going projects challenging

complex salary structures including certain image rights
payments, employee benefit trusts and even other third
party sponsorship income. This could lead to a large
potential tax and/or NIC liability bill for affected clubs.
Which statement below reflects your view?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Not concerned, the tax position

on payments to our players is
robust and very defendable
75
77
69
73
82
75
Somewhat uncertain give

the pace of change of HMRC
enquiries
13
19
12
25
Somewhat concerned that a

sizeable challenge could create
a problem
10
12
18
Very concerned that a sizeable

challenge would create a
problem
FD FOOTBALL SURVEY
17
Clubs who are confident in their robust

and defendable tax position
2015
77%
2014
82%
Three quarters of respondents are confident

that their tax position on payments to
players is robust and defendable a slight
overall drop from 82% in 2014 but an
increase in EPL respondents confidence from
57% to 77% this year.
Only 12% of respondents are concerned that
a sizeable challenge could or would create
aproblem.
Base: 60
23. How many players have been awarded testimonials at

your club in the last three years?
%
Number of players
The number of testimonials equates to one

in every ten clubs per year.
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
19
Base: 60
24. Are you aware of the proposed changes to tax

treatment of testimonial matches and similar events?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
53
85
44
54
37
50
No
47
56
46
63
50
No answer
Base: 60
Nearly half (47%) of respondents are

unaware of the proposed changes to the
tax treatment of testimonial matches and
otherevents.
The EPL respondents are best informed while
63% of FL2 and 56% of FLC respondents are
not aware of the changes.
18
FD FOOTBALL SURVEY
2015
03: CLUB OPERATIONS
25. Was your club late on more than one occasion during
the year with payment of any tax (i.e. corporation tax,
PAYE/NIC, VAT) due to HMRC?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
15
19
63
No
85
100
81
100
37
100
Base: 60
Only 15% of respondents were late with

their tax payments during the year. This is
broadly unchanged from 2014.
Of the nine FLC and FL2 clubs who were late,

five of them had formally agreed the delay
with HMRC.
15%
More than one late tax payment
26. HMRC is targeting players with tax enquiries in relation

to agent fees and image rights payments. How do you
view this development?
%
This is a concern for clubs as it is a
distraction for players
ALL LEAGUES
EPL FLC
FL1 FL2
SP
19
This is changing the way the club deals with

agents and structure payments
15
16
27
19
25
Both 1 and 2 above
17
16
25
18
12
This is largely a player matter therefore the

club does not get involved
60
62
62
55
69
75
Base: 60
Six out of ten respondents do not get

involved in tax enquiries relating to agent
fees and image rights payment considering
them to be largely a player matter. Only a
handful of clubs say that it is concerning as it
is a distraction for players and 15% believe it
is changing the way that the clubs deal with
agents and structure payments.
2015
FD FOOTBALL SURVEY
19
27. HMRC is campaigning to prevent businesses and

individuals using aggressive tax avoidance schemes.
How do you view this action?
%
ALL LEAGUES
EPL
85
70
Not an issue as the club has a

conservative view on tax planning
arrangements
A concern for players as they are liable
to enter such schemes and enquiries
that are distracting
A concern for the club as HMRC
appears to be changing definitions of
tax planning and avoidance
Base: 60
Our survey shows that clubs

are, by and large, confident
that continued HMRC
compliance activity will not
be a cause for concern, and
moreover is a matter for
players to deal with. Our
experience over the last
year also suggests HMRC
has focused more on the
players. However, with the
recent increase in compliance
funding announced by
the Government it will be
interesting to see if the focus
shifts back towards clubs.
shawn healy
employment tax principal, professional sports
FLC FL1
81
91
FL2
SP
94
100
12
15
19
15
To the most part, clubs will be conservative

when deducting taxes from player salaries.
Beyond that, players are left to handle their
own tax affairs.
The quality of tax advice received by
players is therefore a crucial part of their
wealthmanagement.
2015
04: FINANCIAL FAIR PLAY
28. Financial sustainability rules are now in force in UEFA

club competitions and the top four tiers of English
football. Do you believe that similar rules should be
introduced by the SPFL?
All SPL respondents agree that similar rules should be introduced by the SPFL.
29. Did your club comply with the requirements of

applicable financial fair play (FFP) and sustainability
rules in the 2014/15 season?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
98
100
94
100
100
100
No
Base: 58
All but one club in the survey said they

complied with the requirements of the
applicable FFP and sustainability rules last
season. Just one FLC club who returned the
survey did not comply.
no
2%
yes
98%
compliance with the requirements

of the FFP rules
2015
FD FOOTBALL SURVEY
30. Domestic and/or UEFA fair play rules are in operation.

Do you expect that for next season your club will:
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
98
100
100
100
94
100
Only manage to comply by

making significant changes to
the business model
Will not comply, but plan to be

compliant within the next 2-3
years
Will not comply and have

not yet addressed the steps
necessary to become compliant
Comply with these rules with

minimal change to the business
model
98%
all clubs will comply
with the FFP rules
Base: 57
Levels of compliance with fair play rules

continue to rise up from 91% in 2014 to
98% this year.
Only one FL2 club says that it will only

manage to comply by making significant
changes to its business model.
31. Do you believe FFP rules to be broadly workable as they

currently stand?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
89
85
80
100
94
100
No
11
15
20
Base: 58
As in 2014, the vast majority (89%) of

respondents believe that FFP rules are
broadly workable as they currently stand.
Only a handful of EPL and FLC and FL2

clubs disagree.
89%
believe that the

FFP rules are
broadly workable
11%
of FLC clubs
do not agree
21
2015
32. Do you believe the structure of the financial fair play

rules, applicable to your division, to be appropriate?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
73
58
60
90
93
75
Not yet, some refinement

required
16
25
27
10
25
No, a lot needs to change
11
17
13
Base: 60
More than seven out of ten (73%) of

respondents agree that the structure of the
FFP rules are appropriate for their league
up from 56% in 2014. A quarter of EPL and
FLC respondents think that some refinement
is required and a handful of clubs across the
leagues say that a lot needs to change.
33. Do you feel well represented by your league with

regards to financial fair play/sustainability rules?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
87
85
79
100
93
75
No
13
15
21
25
Base: 55
87% of respondents feel well represented by

their league regarding the FFP rules.
This rises to all of FL1 and 93% of FL2

respondents but a fifth of FLC respondents
do not feel well represented by their league.
87%
feel well represented

by their league
of EPL teams do not

feel well represented
by their league
13%
2015
34. Do you believe that the FFP regulations meet the

principal objective of promoting sustainability?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
58
70
27
50
87
75
No, but they are a step in the

right direction
31
15
47
50
13
25
No , there are better ways to

ensure sustainability
15
20
Regulation is not necessary
No answer
10
Base: 60
The percentage of finance directors who

believe that the FFP regulations meet the
objective of promoting sustainability has
risen this year to 58% from 38% in 2014.
The most dramatic change of perspective
is from EPL finance directors of whom 70%
now say this compared to only 14% in 2014.
More than eight out of ten FL2 finance

directors also agree.
58%
Yes
31%
No, but
they are
a step in
the right
direction
9%
No, there are

better ways
to ensure
sustainability
2015
35. In the absence of FFP regulations, would you or your

owner invest more money into trying to realise the
clubs ambition?
%
ALL LEAGUES
Yes, to a significant degree
EPL
FLC
FL1
significantly: 9%
to some extent:
19%
FL2
SP
yes
no
21
19
32
21
11
13
No, the amount we are allowed

to invest is sufficient
42
38
43
56
40
50
No, there is no more to invest
30
24
15
33
40
50
Yes, to some extent
Base: 54
Just 28% of respondents would invest more

money into the club in the absence of FFP
regulations down from a third in 2014.
42% say that the amount they are allowed
to invest is sufficient while three out of ten
say there is no more money to invest.
the amount we are

allowed is sufficient:
42%
One in five FLC clubs would invest

significantly more in their efforts to gain
promotion to the EPL.
there is no more to
invest: 30%
36. Do you feel that FFP sanctions are being

appropriatelyenforced?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
53
36
36
63
71
66
No, they are enforced too

strongly
19
36
18
12
15
No, they are not enforced

strongly enough
28
28
46
25
14
33
Base: 47
More than half (53%) of respondents

believe that the FFP sanctions are being
appropriately enforced. More than a quarter
(28%) say that sanctions are not being
enforced strongly enough while 19% say
they are enforced too strongly.
Opinion is divided on the enforcement of FFP
sanctions. Clearly this is something that the
FFP panels will want to address.
Most clubs believe that cost control and sustainability

measures (often referred to generally as FFP) are meeting
their principal objectives of promoting sustainability, and the
results that we have support this. However, in the context
of augmented Premier League TV rights, one has to question
whether Football League limits need to be further relaxed to
take into account the ever widening financial gap between
the Premier League and the Football Leagues.
ian clayden
partner, professional sports
2015
05: YOUTH DEVELOPMENT
37. For financial year 2015/16, how does your youth

development budget compare to financial year
2014/15?
%
Youth development budget 2015/16 vs 2014/15
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Significantly higher
18
23
27
25
25
Higher
44
54
50
27
38
25
The same
37
23
44
46
37
50
Slightly lower
Significantly lower
No Answer
Base: 60

have a higher budget for youth development
next season. This rises to 77% of EPL clubs.
Just over a third (37%) will maintain the

same level of budget for youth development.
62%
Higher
37%
The same
1%
Lower
38. If there is a change in the youth development budget,

is this directly due to financial fair play/ sustainability
rules or EPPP?
NUMBER OF CLUBS
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
FFP
EPPP
16
Internal policy
Base: 22
Of the 22 clubs who have changed their

youth development budget, 18 of them
say that this is directly due to the FFP or
EPPP rules. The remainder say the reason is
internal policy.
2015
06: PLAYER COSTS AND TRANSFERS

Clearly EPPP is having the desired impact on investment in youth development.
The impact of FFP is much less pronounced.
39. What is happening to liquidity in the transfer market?

%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Improving
13
30
12
25
Worsening
15
16
13
18
25
Unchanged
66
54
69
73
82
50
No answer
12
The liquidity situation in the transfer market

is largely unchanged from 12 months ago.
Two thirds say it is unchanged with only 15%
say it is worsening compared with 29% in
2014. Liquidity is improving for 30% of EPL
respondents, up from 22% in 2014.
Base: 60
40a. What percentage of players in your senior squad have

clauses in their contracts stipulating that their wages
will be cut if the club is relegated?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
<20%
17
16
31
25
20-50%
18
16
19
75
>50%
62
62
69
73
63
No answer
Almost two thirds (62%) of respondents say

that more than half of the players in their
senior squad have clauses in their contracts
stipulating that their wages will be cut if
the club is relegated. This rises to 73% of
FL1respondents.
Base: 60
40b. What are the range of percentage reductions?

%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
<20%
20
18
50
25
21-30%
38
16
44
45
50
25
31-40%
18
38
25
25
41-50%
12
16
13
18
10
10
11
10
25
>50%
No answer
Base: 60
Over half (56%) of respondents would

reduce their players salaries by between
20% and 40% in the event of relegation.
One fifth would reduce salaries by less than
20% and 14% would reduce salaries by more
than 40%.
2015
41. In your budget for 2015/16 will your first team squad
size be bigger, the same or smaller than the season
just ended?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Greater
12
30
12
Same
49
46
56
45
38
50
Smaller
36
16
38
55
44
50
No answer
Base: 60
Just under half (49%) expect for the same

size first team squad next season. Just over a
third (36%) will have a smaller squad.
36%
38%
planning to reduce
squad numbers this
year
FLC clubs reducing

squad size compared
with last year
This rises to 55% of FL1 and 44% of FL2

clubs reducing their first team quad.
42. In your budget for 2015/16 will you spend more, the
same or less on the payroll cost of the first team squad
than the season just ended?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
More
41
70
25
18
44
50
Same
22
25
27
31
25
Less
35
23
50
55
25
25
No answer
41%
30%
clubs will be
spending more
compared with
last year
Base: 60
More than four out of ten respondents will

be spending more on first team payroll next
season. As in 2014, 70% of EPL respondents
will be spending more despite only 30%
increasing squad size.
Clearly player salary inflation is still

prevalent, albeit presumably this will
be limited by the EPL 60m player
remuneration limit.
The percentage of clubs cutting payroll

budgets continues its fall from 56% in 2013
and 40% in 2014 to 35% this year.
2015
43. If your club plans to spend the same or less on first team
payroll in the 2015/16 season, to what extent has this
decision been driven by financial fair play/
sustainability rules?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Not at all
73
100
69
73
70
100
Yes, to some extent
24
31
27
20
10
Yes, to a considerable extent
Only 27% agree that their decisions to spend

the same or less on payroll costs of the first
team squad in the 2015/16 season has been
driven by financial fair play/sustainability
rules. Almost three quarters of respondents
confirm that the rules have not had any
impact on their decision making.
However, 70% of EPL respondents chose not
to answer this question.
Base: 40
44. Will you increase/reduce your transfer budget this year?

%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Increase
22
38
31
12
25
Same
52
16
31
82
76
Reduce
17
16
32
12
75
Base: 60
45. If your transfer budget for 2015/16 will reduce or remain

the same, to what extent has this decision been driven
by fair play rules?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
91
86
86
100
92
100
Yes, to some extent
14
14
Yes, to a considerable extent
Not at all
Over half of EPL respondents will be

increasing their transfer budget or keeping
it the same. Only 16% will be reducing it
(although 30% of them did not respond
to this question) as will a third of FLC
respondents.
91%
deny that their
decision has been
driven by the FFP
rules
9%
Base: 47
More than nine out of ten (91%) of

respondents say that their decision to reduce
or keep their transfer budget the same has
not been influenced by the fair play rules.
More than half (52%) of respondents will

have the same amount of transfer budget
this year and only 17% will be reducing
it. The percentage of clubs reducing their
transfer budget has fallen over the last three
years from 44% in 2013 and 27% in 2014.
These results are very similar to those in

2013 and 2014.
claim FFP rules have

had an impact on
their decision
2015
46. Does your club hedge foreign currency exposure on

substantial balances e.g. player transfer payables /
receivables?
%
Only 13% of respondents say that their

club hedges foreign currency exposure on
substantial balances but, not surprisingly,
this percentage rises to 46% of EPL clubs.
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
13
46
25
No
85
54
94
91
100
75
No answer
Base: 60
47. Do you agree with recent changes in agent regulations?

%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
54
30
69
55
63
25
No
25
46
19
25
25
Dont know
18
12
25
No answer
13
24
12
18
25
Base: 60
More than half (54%) of finance directors

agree with the recent changes in agent
regulations but there is variance between the
leagues with just 30% of EPL respondents
agreeing compared to 69% of FLC.
2015
FD FOOTBALL SURVEY
31
2015
07: GOVERNANCE AND PROPRIETY
48. Do you regard yourself as a public interest business

with higher degrees of scrutiny?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
83
77
81
73
94
100
No
17
23
19
27
Base: 60
49. Does your board include remunerated non-executive

independent directors?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
12
11
27
12
No
88
89
91
73
88
100
Base: 58
83%
While more than eight out

ten (83%) of respondents
regard their football club as
a public interest business
with high degrees of scrutiny,
the percentage of positive
responses has fallen across
the leagues from 2014 when
90% of respondents said this.
Only 12% of club boards include

remunerated non-executive independent
directors a reduction from 20% in 2014.
This is surprising, and concerning, given that
83% of Finance Directors consider their
clubs to be of public interest.
FL1 is the league with the highest percentage
of clubs with remunerated non-execs.
2015
50. Does the level of public interest in your club lead you to
manage the club with heightened corporate governance
in comparison to similar sized companies outside the
football sector?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
66
62
50
82
81
50
No
32
38
50
18
19
25
25
No answer
Base: 60
Two thirds of respondent say that the level

of public interest in their club leads them
to manage the club with a higher level of
corporate governance than they would

for a similar sized business outside the
football sector. However this is down
from 73% in 2014.
51. Do you think the FA/SFA has any authority/mandate to

change the structure of league football?
%
ALL LEAGUES
EPL
FLC
Yes
28
30
44
No
66
70
50
No answer
Base: 60
FL1
FL2
SP
18
19
50
73
75
50
This is also consistent with the

level of non-executive director
representation.
66%
The EPL and FLC figures have

dropped from 86% and 65%
respectively in 2014 while FL1
and FL2 have risen from 71%
and 69% respectively in 2014.
The level of corporate
governance may be set to
increase as clubs become
more profitable (due to
increased TV rights packages)
and gain interest from more
institutional investors.
Two thirds of respondents do not think

that the FA and SFA have any authority or
mandate to change the structure of league
football. This rises to three quarters of FL1
and FL2 respondents who think this.
2015
07: GOVERNANCE AND PROPRIETY
52. Greg Dykes English FA Commission proposals have

been updated with new criteria regarding home grown
players and work permits. Is your club in favour of
theproposals?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
62
38
75
46
88
25
No
18
46
18
12
No answer
20
16
19
36
75
say they will

have a positive
financial impact
did not
answer
14%
17%
Base: 60
For English clubs: What do you expect the net financial

impact of these proposals on your club?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
High negative impact
23
Low negative impact
10
23
No impact
51
38
50
64
75
Small positive impact
13
High positive impact
13
17
16
25
18
No answer
Base: 60
SP
Yes, similar
Yes, in principal but with variation
No
No answer
Base: 4
51%
saying that
they will have
a negative
financial impact
say they will

have no impact
Almost two thirds (62%) are in favour of

the English FA Commission proposals for
increasing requirements for home grown
players although there is a varied response
across the leagues. Unsurprisingly, only 38%
of EPL respondents are in favour compared
with 88% of FL2 and 75% of FLC.
Half of respondents do not think that these
proposals will have any financial impact at
all on their club and only 14% think they will
have a positive financial impact.
For Scottish clubs: Would you welcome similar proposals

from the Scottish FA?
%
18%
2015
53. How important is social media in terms of contributing

to your clubs brand value?
%
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Medium importance
35
38
25
46
37
25
High importance
63
62
69
54
63
75
Low importance
Base: 60
54. Does your club have the appropriate skills to exploit

new/social media?
%
Almost two thirds of respondents say

that social media is highly importance in
contributing towards their clubs brand value.
Only one FLC club believes that social media
is of low importance to their brand.
Given the importance of a national and
international reach for clubs engagement
with its fans, and the impact this has
on commercial, sponsorship and media
revenues, the effective social media is an
imperative for football clubs.
Only 10% of clubs do not have the

appropriate skills to exploit new media but
all but one club expect this to change over
the next 6-9 months.
ALL LEAGUES
EPL
FLC
FL1
FL2
SP
Yes
90
100
94
82
81
100
No
10
18
19
Base: 60
2015
BDO PROFESSIONAL SPORTS GROUP
Our Professional Sports Group

client base extends across major
professional sports including
football, horse racing, rugby,
golf, cricket, and motor racing,
as well as other health and
fitnessbusinesses.
Our team of sector experts which includes

partners with experience of managing and
running top flight football clubs, can provide
football clubs with a complete range of
business advisory services including:
In professional football we have worked for

an array of high profile football clubs and
governing bodies providing specialist services
ranging from audit and accounting to tax
advice on image rights and agents fees to
insolvency assignments.
Business restructuring
External and internal audit

Corporate tax
Corporate finance and financial modelling
Specialist VAT consultancy
Employment tax
Corporate governance
Forensic and fraud investigations.
professional sports group

key contacts
For more information on any of our services
for the football industry, contact the relevant
BDO expert in your region.
scotland
south
charles barnett
Audit/Corp Finance
brian lovie
Employment Tax
andy mcnamara
Audit
james stephen
Business
Restructuring
james roberts
Audit/Corp Finance
stuart lisle
Tax
kaley
crossthwaite
Forensics
0141 249 5233
0131 347 0366
0141 249 5249
0141 249 5246
01293 591 087
023 8088 1861
020 7893 3548
LONDON
NORTH
ian clayden
Audit
ian cooper
Corporate Finance
jonathan
hickman
Tax
shawn healy
Employment Tax
julien rye
Audit
billy cairns
Tax
chris heatlie
Corporate Finance
020 7893 3612
020 7893 2678
020 7893 2496
020 7893 2433
0161 817 7505
0113 204 1306
0161 833 8362
2015
Our specialist services include:

Corporate finance and financial
modelling
We have significant experience providing
transaction advisory and investigative
services across professional sports and
professional leagues to a number of clubs for
both vendors and acquirers. Our specialist
transaction services team performs due
diligence for potential investors and for FFP
planning and compliance, and our advisory
team specialises in leading sale processes
and procuring investment.
Business restructuring
We have been appointed administrators of
a number of clubs including Motherwell,
Oldham Athletic, Dundee, Portsmouth,
Dunfermline and Hearts. All completed
appointments have led to a successful
outcome whereby a dividend was accepted
by creditors under a Company Voluntary
Arrangement (CVA). All companies survived
following the CVAs and are continuing to
trade.
Specialist VAT consultancy
Some of our recent assignments have
included providing extensive VAT input on
the following:
Affinity card agreements
Overseas sponsorship issues
Testimonial/benefit games for current
and former players
Stadium refurbishments and alternative
uses, catering issues, retail sales
Agents fees.
We have produced a VAT overview guide

for clients in connection with a number of
rules and treatments, including the place of
supply of goods & services, plus certain VAT
reporting requirements and a matrix relating
to the key income streams.
Employment tax
The continued HMRC focus on compliance
activity, especially with regard to
employment taxes, is likely to lead to clubs,
players and agents featuring in HMRC plans.
HMRC has also set up specialist units to
focus on young high net worth individuals
which no doubt will include high profile
players. We have considerable experience
in dealing with HMRC enquiries acting for
all parties in the UK and further afield. Our
approach is to help HMRC understand the
often complex fact pattern underpinning a
particular matter such as a player transfer
and reaching a solution that is equitable to
all parties.
corporate governance
Good corporate governance is essential
if clubs are to be managed effectively by
executive directors and legal obligations
discharged properly by non-executive
directors. Procedural issues include:
Transfer policy aquisitions and disposals
Disciplining regulations and rules
players and directors
Fraud protection
Anti-money laundering
Cost control regulation
Transparency measures
Diversity and community.
forensic and fraud investigations
We provide forensic accountancy,
investigatory and expert witness services to
a number of clubs.
2015
BDO LEISURE AND HOSPITALITY
Alongside the Professional Sports

Group, our team works with
international businesses across
the leisure industries, including
betting and gaming, hotels,
restaurants, bars and pubs, and
travel and tourism.
betting and gaming
hotels
BDO has acted as auditors, tax advisers and

consultants to many UK and international
betting and gaming businesses, both
private and publicly quoted. Our clients
range from many of the major bricks &
mortar bookmaking and casino operators
to major offshore telephone and internet
sports books, casinos, poker and other
online gaming activities. As well as the more
traditional forms of betting and gaming, we
also act for FCA regulated businesses in the
financial trading, financial spread betting and
CFD sector.
Our expertise covers the entire spectrum of

investment and operating activities and our
involvement brings credibility, competence
and independence to any project. In short,
if you are active in the hotel industry then
you should be talking to BDO, the industry
experts.
Specialist advice we can provide to the

sector includes:
Audit and assurance
Specialist advice we can provide to the

sector includes:
Audit and assurance
Feasibility studies
Business valuations
Litigation support and expert witness
services
International tax planning and structuring
Mergers and acquisitions including MBOs,

MBIs and flotations
Corporate financing and flotations
Fund raising and refinancing
Property and corporate acquisitions and

disposals
Financial investigations and dispute

resolutions
Financial Services Act regulations and

compliance
Systems reviews
Turnaround and distressed situations.
Installation of management reporting and

controls and internal audit functions
IT controls, environment reviews and
systems improvement advice.
john barker
stuart collins
020 7893 3980

john.barker@bdo.co.uk
020 7893 2604

stuart.collins@bdo.co.uk
2015 | FD FOOTBALL SURVEY 39
restaurants, bars and pubs
travel and tourism
BDO can help realise opportunities and

value, and minimise the challenges
associated within roll-out growth just
as we have helped numerous clients to do
during our long established history as a
leading adviser in this sector.
The travel sector has undergone some of

the biggest changes we have witnessed to
one particular industry over the last few
years. It has been a roller-coaster ride of new
entrants and new technology, consolidation
and unpredicted new challenges BDO has
helped its travel clients turn a turbulent time
into one of opportunity.
We have advised clients as diverse as

international brands and national chains,
to owner managed businesses and outlets
looking to expand and/or diversify. Our
expertise will assist whether you are the
individual restaurateur, the group operator,
the restaurant franchisor or franchisee or
private equity investors.
Specialist advice we can provide for your
sector includes:
Audit and assurance
Our commitment to this sector has seen us

attract some of the best known names in
the business from owner managed private
businesses through to large listed companies
with international networks. BDO is an ABTA
Travel Industry Partner and a member of the
Institute of Travel and Tourism.
Specialist advice we can provide for your
sector includes:
BERR report, TRONCS, minimum wage

legislation
Audit and assurance
Tax efficient employee incentive plans
Tour Operator Margin Scheme
Property issues and the associated stamp

duty and capital allowances
Industry regulation and compliance
Business acquisitions
Tax planning and compliance for the

travel industry
Raising finance for business expansion

public and private, equity and debt
ATOL applications
Flotations, acquisitions and disposals
Business continuity planning.
Franchise advice.
david campbell
dominic stammers
020 7893 3610

david.campbell@bdo.co.uk
020 7893 2471

dominic.stammers@bdo.co.uk
FOR MORE INFORMATION:

CHARLES BARNETT
Partner, Professional Sports | Scotland

+44 (0)141 249 5233
charles.barnett@bdo.co.uk
BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO
International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent
member firms. A list of members names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO
LLP is authorised and regulated by the Financial Conduct Authority to conduct investment business.
IAN CLAYDEN
BDO is the brand name of the BDO network and for each of the BDO Member Firms.
Partner, Professional Sports | England

+44 (0)207 893 3612
ian.clayden@bdo.co.uk
JULIEN RYE
Partner, Professional Sports | North England

+44(0)161 817 7505
julien.rye@bdo.co.ukudit
(See full list of contacts on page 36)
HB007827
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance
only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the
information contained therein without obtaining specific professional advice. Please contact BDO LLP to discuss these matters
in the context of your particular circumstances. BDO LLP, its partners, employees and agents do not accept or assume any
liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this
publication or for any decision based on it.
BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to operate within the
international BDO network of independent member firms.
August 2015 BDO LLP. All rights reserved.
www.bdo.co.uk

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INVESTING FOR SUCCESS:

FOOTBALL FINANCES AND

METHODOLOGY AND SAMPLE PROFILE

BDO PROFESSIONAL SPORTS GROUP

However, for the Premier League, in the

Loss of income through relegation is the

financing the club

Contrary to 2014 optimism of a

Six out of ten respondents do not get

Although 62% of EPL FDs believe ticket

financial fair play

There is little appetite for a summer football

HMRCs campaign to stamp out aggressive

All but one club in the survey said they

player costs, transfers and youth

More than half (54%) of Finance Directors

Two thirds of respondents do not think

01: FINANCING THE CLUB

1. How would you rate your clubs current financial

Could be better but not bad

A cause for grave concern/on

The financial health of football leagues

More than four out of ten (42%) respondents

2. Is your club dependent on the principal shareholder(s)

Two thirds of clubs are dependent on the

in 2014 to 38% this year. However, this was

01: FINANCING THE CLUB

3. Has your club used funding from a secondary source

As in previous years, hardly any clubs have

a secondary source secured on media or

4. Are the current owners of the club considering a full or

This years results are again similar to those

This rises to 23% of EPL and 27% of

EPL respondents who believe that

5. As far as you are aware, within the last 12 months has

6. Has your club given a fixed charge over the stadium as a

A quarter of respondents are aware of an

One fifth of respondents are giving a fixed

7. If the club has given a fixed charge over the stadium as

Build or expand the stadium

Provide cash flow for the club

Of the 12 clubs who have given a fixed

02: CLUB REVENUE AND PROFITABILITY

8. Do you expect to make a profit before player trading

Just four out of ten (40%) of respondents

This is encouraging for the EPL (up from

9. Do you expect to make a profit after player trading and

Almost two thirds (64%) of respondents

A distinction needs to be made here

10. What has been the impact of the economic conditions

Match day catering

Corporate entertaining packages

Season ticket sales

compared to previous year expectations

There have been no strong trends in the

02: CLUB REVENUE AND PROFITABILITY

11. What effect do you expect the state of the economy to

Match day catering

Corporate entertaining packages

Season ticket sales

Despite patchy results from the 2014/15

12. In light of the substantial increase in the next EPL

Dont know / no answer

While more than half (54%) of finance