The financial outlook for Portsmouth FC in the Championship is under scrutiny by Andrew Moon.
The call for regulation in football finance isn’t typically a rallying cry, but Portsmouth supporters recognize the necessity for safeguarding clubs against unscrupulous ownership.
It’s uncertain how many potential owners might have been barred from taking over Portsmouth with stricter ownership tests, but one hopes it’s not none.
Portsmouth’s recent history is peculiar; despite questionable ownership decisions like selling to a son of a convicted arms dealer who overspent massively, it led to memorable moments such as FA Cup finals and visits from AC Milan. However, the aftermath was challenging, and the club was ultimately saved by the unwavering dedication of its fans, although the process took a toll.
Unfortunately, many other clubs have faced similar struggles, with some, like Bury, even folding. The prospect of a new regulator is promising, though skeptics await the details before embracing it as a savior.
Ironically, this regulatory intervention comes too late for Portsmouth, as the club is now more stable than it has been in years, with significant off-field investments improving facilities like Fratton Park.
However, as the club faces the realities of Championship finances, the prospect is daunting. While CEO Andrew Cullen believes sustainability in the Championship is possible, he acknowledges the financial challenges, especially compared to the “insane” finances of the Premier League.
Premier League parachute payments, likely exceeding £50m for relegated clubs, present a stark contrast to Portsmouth’s turnover. While mid-table survival is feasible, competing at the top will be arduous.
Efforts to negotiate a “new deal for football” have stalled, with parachute payments remaining non-negotiable for the Premier League. Without significant changes, the financial hemorrhage in the Championship seems inevitable unless parachute payments are reduced.
Portsmouth has progressed beyond immediate concerns of overspending or unstable ownership, but other clubs still require protection. Ultimately, there’s a need for a system that allows well-run clubs to progress through the leagues without financial recklessness—a reality not yet achieved.
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