One-in-five clubs in the Football League (refers to the three divisions below the top flight - the Championship, League One and League Two) are in "poor financial health", according to a survey by administrators Begbies Traynor. Begbies Traynor are presently overseeing the administration of Port Vale FC.
"Many clubs are continuing to spend too much, principally on players' wages, as they always have done" it said.
Of 68 teams surveyed in those divisions, 13 have signs of distress such as serious court actions against them, including winding-up petitions, late filing of accounts and "serious" negative balances on their balance sheets. That 19% compares to just one per cent in the wider economy, the firm said.
"While Premier League clubs are guaranteed huge television money every year and some have extremely wealthy backers, there are signs of genuine financial distress among a significant number of football league clubs," said Gerald Krasner, a partner at Begbies Traynor. "The sales of season tickets for next season, many of which are paid for during April and May, could provide some short-term relief for struggling clubs, but it won't solve the underlying problems."
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