Championship, Clubs could go bankrupt chasing Premier League dream says report

Clubs could go bankrupt chasing Premier League dream says report

Sky Bet Championship teams chasing promotion risk going bankrupt by spending too much according to a report by financial experts Vysyble.

The chance for teams to play in the Premier League is one that many must take and over the last few years, more and more teams have spent more and more money to try and get into the top tier of English football. But the teams that are desperate to mix it up with the likes of Arsenal and Manchester United are risking the future of the club due to the amount of money they are spending.

The report found that between the seasons of 2008/09 and 2015/16, one team out of the 19 that were promoted to the Premier League were making a profit. That was Crystal Palace, who at the time were bouncing back from being put into administration. The report goes on to say that on average the teams that were promoted were losing a shocking £300,000 a week when they managed to get into the top tier. This overspending continues when they are promoted as well as they look to compete with the established Premier League teams, meaning those losses only get bigger and parachute payments would struggle to cover them should they be relegated.

The co-author of the report Roger Bell told BBC Sport: “EFL clubs who spend beyond their means are, in fact, risking their futures by chasing a dream that is just that, a dream, and one that is actually more likely to end up as a financial nightmare,”

The EFL refuted these claims with their spokesperson saying: “Reports of this nature inflame the position and confuse the reality of the situation for supporters,”

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