PREMIER League football clubs anticipate a fall of up to 20% in corporate hospitality income this season, as the recession continues to takes its toll.
It follows signs last season of fans tightening their belts as almost 40% of clubs reported falls of more than 5% in their merchandising and corporate hospitality incomes.
More than a third of clubs are also under more pressure from their banks and about 50% expect to use more than 90% of their overdraft, up from 41% in 2008.
The findings are revealed in Staying on the Ball – How Clubs are Responding to the Credit Crunch, the eighth annual survey of English football club finance directors by Liverpool accountants PKF.
Head of tax Jane Jackson said: “Most clubs are finding it harder to raise funding, more are digging deep into their overdraft facilities to keep going, and fewer expect to make a profit this season.”
Even Merseyside Premier League giants Everton and Liverpool have seen their transfer spending restricted this season by their normal standards.
The drive to reach the Premier League by second tier sides in the Championship is seen as the biggest gamble in the game, said Ms Jackson.
“Do they spend to try to reach the Premier League, or spend to avoid relegation?
“Either way, the price of failure could be catastrophic.”
She also warned Premier League sides need to appreciate the potential impact of the recession on their club: “What is surprising and moreover, concerning, is that around a third of clubs do not believe the credit crunch will have any impact on their operations.
“In my view, this is wishful thinking. Clubs must appreciate the continuing economic uncertainty and rise in unemployment will affect their supporters’ ability to spend over the coming season.”
