3 Dec 2009

English football clubs in financial peril?

8:14 am on 3 December 2009

Several British football clubs are in danger of going out of existence due to falling revenues exacerbated by huge wage bills, according to a leading insolvency lawyer.

In an interview with Reuters, Danny Davis, a partner in the London law firm Mishcon de Reya, said most football clubs appeared to be "in real financial difficulty".

He said the real issues of the moment are that not enough people are going to the games, not enough people are watching them on television, the revenue is deteriorating and advertising is dropping.

Davis said huge wage bills were a primary reason for the parlous position of so many clubs.

He said one of the reasons football clubs don't have much money is that they pay their players too much money comparative to their operating income.