Sport: Market forces mean rosy outlook for football
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The financial future of English football is brighter than at any time since the late 1940s, according to a statistical analysis of clubs' financial performance in the latest issue of the International Review of Applied Economics. The authors, Stefan Szymanski and Ron Smith, argue the Taylor Report has forced clubs to invest in facilities they would have had no incentive to provide of their own accord.
Between 1974 and 1989 the game made big losses, showing a profit in only six years. But the introduction of market forces via the exposure of a stock market listing - there are now a dozen quoted clubs and another half dozen planning to float - will force them to turn a profit in future. Newcastle would probably not have paid a record pounds 15m for Alan Shearer if it had had to answer to external shareholders.
International Review of Applied Economics, January 1997, Carfax
Publishing.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments