class=”sc-29f61514-0 fQbOYE”>
In a few days the ball will roll again in the Super League. ‘Finally’, several clubs will think. After all, the income on match days is one of the most important sources of income. Without them and the annual financial injections from their shareholders, most Swiss football clubs would go under.
The University of St. Gallen (HSG) has attempted to reflect its financial situation in a study over the course of the past season. The result is frightening.
Of course, it should be noted that football clubs in general cannot simply be compared to conventional private sector companies.
But the stats are the same. This can be seen, for example, in the equity ratio. This number provides information about whether a company has enough money to survive two to three financially demanding years. According to the HSG, the clubs must reach a minimum of 20 percent to be considered stable.
More bottlenecks
The bad news: only St. Gallen, YB and Servette surpass this number. For the HSG it is clear why they are no longer there: risky investments are the order of the day. “Basel spent more net money on transfers than the rest of the league around 2021 and at the same time suffered by far the biggest defeat. Actually, with the exception of the three clubs mentioned, the situation does not allow a negative balance of player transfers financially. »
The HSG signals another bottleneck in the excessively high personnel costs. According to the theory, a maximum of 70 percent of the income from the football business – entrance fees, television and sponsorship contracts, transfers – should flow to wage costs. “More than half of the clubs do not meet these requirements. Three clubs are between 85 percent and 100 percent, which makes it practically impossible to operate profitably.”
Requirements for the SFL
Mainly for these two reasons, the HSG is demanding that the Swiss Football League (SFL) position itself more strongly as a regulatory body to create binding framework conditions so that more than three clubs are considered reasonably healthy.
In the short term, the HSG study probably won’t change much in the football world. However, they let the lump roll gently for now. When asked by Blick, Oliver Wirz, CFO of the SFL, says the suggestions have been noted. In addition, they were “intensively discussed” with the club’s financial managers. However, not everything can be implemented so simply and directly. The introduction of an equity ratio and a limitation of management costs is subject to “serious reservations”.
Source : Blick
I’m Emma Jack, a news website author at 24 News Reporters. I have been in the industry for over five years and it has been an incredible journey so far. I specialize in sports reporting and am highly knowledgeable about the latest trends and developments in this field.
