Credit reference agency ICC Credit reports that between the 2003 and 2004 season, whilst employee remuneration remained constant, directors’ pay increased by 12 per cent across all four professional leagues.
Although profitability overall has improved by 40 per cent across the leagues, clubs are reported to be losing a combined total of £300million per year.
As well as high profile casualties such as Leeds United and Leicester City, a number of smaller clubs have been struggling such as Wrexham and Cambridge, currently in administration, and Port Vale, operating under a voluntary arrangement.
Matthew Debbage, head of product and marketing, ICC Credit said: “Providing credit terms to football clubs can be dicey. What may appear to be a healthy club on the surface may soon turn into a bad debt. It is imperative that clubs are monitored for early warning signs such as County Court Judgements, in order to minimise risk.”
ICC Credit reports that there are currently 31 clubs that have at least one County Court Judgement (CCJ) filed against them.
For full details of the report, visit www.icc-credit.co.uk
