The Have and Have Not's

In the past couple of weeks, Premier League football clubs have been in the business news discussing their current finances either because their latest accounts have been published or because they are the focus of a much maligned takeover bid.

Arsenal Football Club released trading figures at the end of September showing pre-tax profits of some £56 million for 2009. Manchester United's figures released at the end of last week show a phenomal £79.8 million loss although this doesn't seem to phase their owners in the slightest as they have paid approximately £40m in interest payments alone and £67m in finance charges, which were one-off occurrences.

The likes of Arsenal and Manchester United though did manage to achieve £650m turnover between them and regardless of debt financing, these figures are a million miles away from that of clubs in the lower divisions who struggle from day to day to survive. Premier League clubs are guaranteed at least £39m per season from TV revenues and whereas pre "Bosman" higher league clubs would feed money down the chain via transfers, this rarely happens as players take advantage of running down their contract periods and simply leave on a 'free' and the lower league club getting no transfer fee and at best getting nominal compensation from the multi-rich clubs.

The last couple of years has seen several clubs enter administration and this trend looks likely to continue, particularly in the Championship, League 1 and 2 clubs who survive on moderate TV money and small crowds.