Comment: What can football offer the minnows?

WITH Burnley’s promotion to the Premiership the North West boasts more clubs in the top flight than any other region.

Eight clubs can now claim this distinction, overshadowing many other parts of the country, particularly Yorkshire which is only represented by Hull City.

New research by the accountancy firm Deloitte has found that four of the top 10 Premiership clubs by revenue are based in the region.

And the North West’s 22 league clubs generated £800m in revenue between 2007-08, nearly one third of the total £2.5bn generated by all 92 clubs in the football league.

The fact that the region has such a strong position in the football market should be celebrated. But it’s important not to lose sight of the reality for many smaller clubs.

In the last few months League One club Stockport County and former League Two side Chester City both went into administration.

Last month non-league side Northwich Victoria went into administration for the second time in five years and League Two club Accrington Stanley faces a High Court date on June 10 after being issued with a winding-up order by HM Revenue & Customs.

The day-to-day struggles of these clubs and many others offer a very different picture of the business of football.

But Deloitte partner Dan Jones argues that it is possible to run a football club in the lower leagues away from the riches of the Premiership.

“There is a myth that you can’t run a solvent club in division one or two,” he told TheBusinessDesk. “It is impossible if the club is managed badly and the club over-spends, but quite possible if it is run properly.”

So while football has become polarised in terms of wealth it doesn’t necessarily follow that survival and success can only be experienced in the top flight.

If smaller clubs can balance their sporting ambitions with their cash flow they should be able to avoid the drop – and the black hole of insolvency.