18 Oct 2012

English football clubs gamble on making the Premier League

12:51 pm on 18 October 2012

English football clubs are putting their survival at risk by spending heavily to try to win a place in the lucrative Premier League, a report from accountancy firm PKF says.

Television deals have turned English football into the haves and the have nots with it becoming harder to avoid losing money if a club is outside the Premier League, saysthe head of PKF's Football Industry Group Charles Barnett.

He says many clubs outside of the Premier League elite are precariously balanced between survival and insolvency.

Barnett says the tension is particularly evident in the Championship or second division, where many clubs gamble with their survival for a shot at entry to the promised land of the Premier League.

The report says of the 62 clubs surveyed in the England and Scottish Premier Leagues, fully two-thirds don't expect to make a profit in their next accounting period if payments for player transfers aren't included.