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Manchester City made losses of £746,000 in the year up to June 2017.
Manchester City made losses of £746,000 in the year up to June 2017. Photograph: Tom Flathers/Man City via Getty Images
Manchester City made losses of £746,000 in the year up to June 2017. Photograph: Tom Flathers/Man City via Getty Images

The next goal for women’s football is to help clubs balance the books

This article is more than 5 years old

A first professional league has changed the women’s game but how stable are the foundations of the pyramid?

The first fully professional women’s league in the world, with a semi-professional second tier, is a huge step forward. For the first time, girls playing in playgrounds and schools, no matter the obstacles they may face, can see a pathway to a career in the game. The quality of the product is getting better and better. With Women’s Super League players not needing a job to make ends meet, technical and fitness levels are only going to continue to improve.

But how stable are the foundations of this restructured pyramid which marks a new era for the domestic game? What are the commercial prospects? And what is needed to steady the ship?

Women’s teams at the top are overwhelmingly reliant on the financial support of their parent clubs, and the majority have operating losses which range from Manchester City’s £746,000 in the 13 months to 30 June 2017, to Liverpool’s £71,236 for the year ending 31 May 2017, according to their accounts.

Of the 11 teams in the WSL, nine have accounts registered with Companies House and only Everton and Birmingham made profits in the financial year ending May and June 2017 respectively – and those were small.

There are lots of anomalies from club to club. Arsenal Women, for example, received £1,592,000 from their parent company, which waived the right to reimbursement, and had a £265,000 operating loss in the most recent financial year. Unlike at most other clubs, all their staff were paid and employed by the parent company.

Despite the discrepancies, the figures that exist do not paint a pretty picture. However, they have to be taken with a pinch of salt, not least because it is not uncommon for football clubs to operate with a loss.

Time moves quickly in football, and perhaps even more quickly in women’s football. The women’s pyramid has faced changes year on year, from league sizes to the switch to a winter schedule, and has lacked stability.

Accounts ending this year, still before the restructure, may well look very different to those that ended in 2017. The move to the winter season has affected attendances and means match-day revenue will have fallen on average but commercial interest has been on the rise.

The financial implications of the restructure will be evident only when accounts covering this season are published. In applying to be in the WSL clubs had to submit “detailed marketing and commercial plans to support an increase in match-day attendances and income generation”, as well as supply a forecast for the next four years. The arrival of Manchester United on the scene with a rumoured investment of £5m will also shake things up.

Funding from the Football Association has increased to £120,000 for WSL clubs and £61,500 for Championship clubs.

Women’s sport generally is increasingly attractive to companies for a number of reasons. It is an untapped market with the potential for rapid growth, relatively low investment can reap big rewards and women’s sport is seen as cleaner, fairer and better for a company’s image.

The FA has been vocal about its wish to find a sponsor for the leagues, with the new head of the women’s professional game, Kelly Simmons, stating it as a key aim.

Arsenal in action against Birmingham City earlier this month. Photograph: TGSPhoto/Rex/Shutterstock

Both domestic cup competitions in England have sponsorship deals, the energy company SSE with the FA Cup since 2015 and Continental Tyres with the League Cup since 2011. The national team benefit from partnerships with Continental Tyres, Nike and Vauxhall, plus more recent deals involving Disney and Mars.

The cosmetics company Avon became the first company to sign an independent shirt sponsorship deal with a WSL team when it announced a three-year partnership with Liverpool in 2017. In recent months Barcelona have unveiled a similar link-up with the tool company Stanley Black & Decker. BPI sponsors Portugal’s women’s team alongside the men’s and has become the named sponsor of women’s league as part of a new agreement with the Portuguese FA.

A big problem for the WSL is that the bulk of club incomes comes from commercial deals or sponsorship, dwarfing match-day revenues. A colossal 70.3% of Manchester City’s turnover is commercial, compared with 9.4% in match-day income. For Liverpool, the figures are 81.8% and 1.3%; Birmingham’s stand at 77% and 4.8%.

Low and falling attendances pose two problems. First, cripplingly low crowds hold down match-day revenue, which should be one of a club’s biggest financial assets and, second, sponsors and commercial partners will stay interested only if the audience keeps growing. Partners seem willing to bank on the potential of the sport but that will not last forever.

Although the restructure promises to shake things up, expecting a dramatic turnaround in the fortunes of club finances could be premature. The criteria on which clubs were admitted to the top two divisions, and the vigorousness with which their applications were tested, have been called into question. Having been successful in bids to remain in the Women’s Championship, last year’s champions Doncaster Rovers Belles, and Sheffield FC, pulled out of the league citing the demanding financial commitments.

Their slide into the third tier follows that of Oxford United and Watford, Sunderland’s fall two divisions from the WSL and the collapse of Notts County on the eve of the 2017 Spring Series.

Clubs’ finances teeter on the edge, tied to the financial stability and philanthropy of their parent companies. Whether the financial effects of the FA’s restructure of the women’s pyramid will have a positive or negative effect will take time to show. What is clear is that the unsure and haphazard starting point means that a significant increase in support from parent clubs and an increase in sponsorship are vital for the short- and medium-term future of professional women’s football.

Talking points

Arsenal have signed Janni Arnth from the 2017 Swedish champions Linköpings. The Danish defender has 78 caps and comes into an unbeaten Arsenal having endured a disappointing season with Linköping.

Chelsea have been drawn in the Champions League quarter-finals to face 2017 finalists PSG. Wolfsburg play Lyon over two legs in a rematch of the 2018 final, which the French club wonafter extra-time. Slavia Prague face Bayern Munich and Barcelona play Norway’s LSK Kvinner.

Chelsea face a daunting route in the Champions League. Photograph: Chelsea Football Club/Chelsea FC via Getty Images

Everton have announced the departure of manager Andy Spence following defeat by Yeovil, who won their first game in the WSL since their promotion in 2016. The goalkeeper coach Jennifer Herst has been put in temporary charge of the side, who are yet to win this season.

Phil Neville has indicated the Lionesses will not play friendlies in the January break, with final World Cup preparations likely to come at the SheBelieves Cup at the end of February.

Switzerland host the Netherlands on Tuesday in the second leg of a play-off for the final Uefa place at the World Cup. The Netherlands, who won the 2017 European Championship, have a three-goal lead courtesy of Lieke Martens, Viv Miedema and Sherida Spitse.

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