Something does need to change but I think the EFL are probably as far as they can go on this. Would the government legislate? Doubtful, given the amounts of organisations that leverage debt and generate profit from doing so. Likely many of their donors and backers. The clubs aren't going to push the change given the owners are already in. The TV companies aren't going to suddenly pull the plug on higher funding given the increased competition and some huge entrants like Amazon. Could the Russian invasion and subsequent sanctions have a knock on? Maybe in that it may reduce Russian and chinese interest. But there are still plenty of US, far east and middle eastern entities willing to throw money at this sport still, staggering given history. I suspect we've a long time left of this.
What's wrong with football? If I wanted a conservatory building on my house I'd have to have the cost of materials and Labour. In football you can sign 22 players on 3 year deals and not have 3 years worth of salaries in the account to pay them. It's dependant on outside variables. I'd like to see what the football pyramid would look like on sound financial footing. It would look drastically different.
Absolutely! FFP and the 'fit & proper test' are not fit for purpose, and of course parachute payments take some of the jeopardy out of relegation. Part of the issue for me as well is that there's different rules around finances for the Premier League, Championship and then leagues 1 & 2. If anything, that disparity only further promotes club owners to be Liberal with the rules. The whole system needs a reform.
Football is a business though There’s thousands of companies that don’t have the cash reserves to cover the next 3 years debt. However, they all ought to have a solid business plan to cover their liabilities that’s been approved by interested parties. The difference in football is that the business plan often relies on a generous benefactor for income. unfortunately that’s not just true of Derby, it’s everyone from Man City to Scunthorpe, with very few exceptions.
The parachute payments after dropping from the Premier League have become a joke, since it was increased to 4 years. A 2 year parachute payment on top of an increased share of money for the rest of the league would be plenty to avoid clubs folding after relegation.
