Another dysfunctional league

The Football League in England have woken up to the notion that they do not have a working business model.  Solidarity payments from the FA Premier League’s new TV deal will earn Championship clubs £2.3m a season (considerably more than Celtic will receive from TV for winning the SPL), with League One sides earning £324k and League Two sides earning £250k.

Unfortunately, for those hoping to establish a well-balanced and competitive structure, parachute payment to those relegated from the Premier League will earn each club £69m (£23m in year one, £18m in year two and £9m in years three and four).

The Guardian report that today Championship clubs are expected to warn the Premier League that they risk permanently damaging the “integrity of the Football League” by increasing parachute payments to the proposed level.  An unusual case of a group asking for some of its members to receive less money.

The Football League doesn’t have a viable business model.  Clubs spend unsustainable amounts of money trying to attain the riches of the Premier League, where they can add zeros to both income and expenditure.  Most fail and many of them plummet down the divisions.  Even those who drop into the Championship with parachute payments (albeit at the old level) find deleveraging too difficult.

The SPL doesn’t have a viable business model either.  They should be talking to the Football League and see what benefits could accrue from working together.

10 years ago tonight:

Liverpool 0-2 Celtic

Bang! Celtic are in a European semi final.
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