Counting the Costs of COVID-19 on Professional Football Clubs and Their Communities: Financial Database and Qualitative Interviews, 2021-2022

The project has 2 main research questions: RQ1 - what is the financial impact of Covid-19 on English professional football clubs so far? RQ2 - what is the wider impact to the local community focusing on four professional football clubs and football community trusts? The data collected for the project is broken down below across the 2 research questions highlighted above and is split between quantitative data (research question 1) and qualitative data (research question 2). Data collection for RQ1 Quantitative data was extracted from the financial statements of football clubs and the relevant financial data was used to create a bespoke financial database in Microsoft Excel. The data covers all 92 professional football clubs in the EPL and EFL in any given season from 1992/1993 to 2019/2020. At present there are 20 clubs that compete in the EPL and 24 in each of the Championship, League 1, and League 2. Owing to promotion and relegation during the time period analysed, our database covers a total of 112 unique professional football clubs. The financial database contains 28 independent variables in respect of financial and sporting performance that we have defined as Key Performance Indicators (KPIs) for a football club. Data collection for RQ2 Qualitative data was sourced from four professional football clubs that are currently competing in League 1 at the time of writing. Semi-structured interviews were conducted with key individuals at the clubs. A total of 18 interviews were undertaken across the four clubs. Owing to the Covid-19 situation and various lockdowns and restrictions throughout the project, the majority of interviews (apart from one face-to-face visit) were conducted online using Microsoft Teams. Interviews were recorded and transcribed in Teams and then exported to Quirkos (a specialist qualitative analysis programme) for further thematic analysis. Interview schedules were designed based on job role of the interviewee. For example, interviews with CEOs covered all aspects of the business including finance and strategy whereas interviews with Community Managers focused more on the fans of clubs and wider social impact.

Many professional football clubs, particularly in the lower leagues of English football, face financial ruin and are on the brink of collapse. This situation is likely to be exacerbated throughout 2021 owing to the current COVID-19 global pandemic. Consequently, this project aims to analyse the financial impact of COVID-19 on professional football clubs in England and the wider impact on their communities. In the last year, one community has already lost its professional football club (Bury FC) and other communities have been affected by the demise of semi-professional clubs (e.g. Rhyl FC). The project has three main research questions. First, what is the financial impact of COVID-19 on the professional football clubs? Second, what is the wider economic impact to the local community that a club is placed in given the distinct possibility of matches being played behind closed doors for a considerable amount of time? Thirdly, what are the wider effects on the community in football community trusts and social cohesion? The project serves to provide a rapid analysis of the impact of COVID-19 on English football's finances. In relation to research question one, the focus will surround the financial situation of professional clubs including issues such as the distribution of wealth and financial disparity between clubs in the English football system that could lead to overspending and potential insolvency. It will also consider the impact of broadcast rights distribution, solidarity payments and parachute payments across the system and provide strategic direction for a collective recovery. The intention is to stimulate discussion, analysis, interest, and research on how football governing bodies can use the opportunities presented by the COVID-19 pandemic to reset the financial landscape in the English system. Such discussion provides a more balanced, competitive suite of competitions that collectively tackle financial inequality and put aside self-interest. COVID-19 allows us to revisit existing issues in how football leagues in England are governed. Existing structures have created a significant financial disparity between the professional leagues; a financial disparity that has grown since the formation of the English Premier League (EPL) in 1992/93 and which COVID-19 has laid bare. Additionally, the pandemic has presented several financial issues that may threaten the sustainability and future of clubs and which are tied to the broader financial performance of clubs. These are the impact on non-playing staff (with regards to redundancies and pay cuts), the impact of having no fans in stadiums (from both a financial and social aspect) and the impact on businesses situated near football stadia that rely on matchday attendances to boost trade. All these issues are intertwined and they remind us that all these football partners are directly involved in the value creation process, and that their voice, influence and legitimacy extends far beyond turning up to a live game once or twice a week. For example, broadcasters are fully aware of their devalued product when there are no spectators sitting in the stands. The symbiotic nature of the relationship between fan, club and the wider community is one in which they co-create a product that is irreducible to either one alone. This biweekly co-created ritual is key to the sustainability of many football clubs, and the entire ecosystem of the sport. This project will analyse the above issues and present an overview of the financial situation in English professional football in a post-COVID-19 climate. It will offer recommendations for governing bodies and national associations as to how they can collectively work together to secure the long-term financial viability of the entire league structure.

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