Lower division sides left in ‘precarious’ position

Teams down the league pyramid can expect short-term cashflow problems following the postponement of fixtures due to the coronavirus pandemic as they look to “keep the wolf from the door”, according to leading football finances expert Kieran Maguire.

Top-level English and Scottish football has been suspended as sporting events across the globe continue to feel the impact of the virus.

This season has again seen several English clubs lower down the divisions struggle to balance the books, with Bury having been expelled from Sky Bet League One in August last year after continuing financial problems and the collapse of a late takeover bid.

Gate receipts remain key for teams outside the Premier League, which are supported by lucrative television deals.

Maguire, a senior teacher in accountancy at Liverpool University’s Management School and author of The Price Of Football: The Finance And

Economics Of The Beautiful Game, fears a lack of money through the turnstiles could have major implications.

“If matches are postponed rather than the season cancelled, then what we are dealing with is a cash-flow issue rather than anything else. Ultimately the clubs will get nearly all of that money back when the matches are rescheduled,” Maguire said.

“I certainly do not see any problems as far as the Premier League is concerned. Overall Premier League clubs get 13% of their income from matchday, so they should be able to absorb those shocks.

“However, when we drop into the EFL things start to become more precarious.

“If you take a look at those clubs who are not in receipt of parachute payments in the Championship, some 31% of their income is from matchday. When you drop into League One and Two, broadly it is around a third of money which is coming from the fans.”