In our view, many industry sectors tend to display the same economic behavioural traits. The biggest players by revenue are not necessarily the most economically productive nor do they tend to be driven by value-based principles. Thus, what most would consider to be ‘profitable’ businesses are in fact quietly but efficiently destroying shareholder value.
Football is no different. Despite the indulgence of rich owners, many clubs destroy value on a significant scale and in some notable cases the desire to remain in the top flight has driven some owners beyond the bounds of economic sensibility. And yet the accepted measure of size and success is revenue regardless of the underlying economic position. As our work continues to demonstrate, the economic position is hugely influential in how clubs perform over the longer-term.
As part of the matchday experience, we developed the Matchday Metrics series of information panels in order to give fans an insight into the economic position of their club and the opponent on the day. Fans can compare various financial and economic aspects in a simple and accessible format as illustrated below:
Included in the data is the increasingly important Football Profitability Index™ (FPI) which highlights the economic efficiency of each club. As can be seen in the above example, Huddersfield Town’s latest economic numbers and FPI value indicate that the club is less efficient in converting revenue into an economic profit position than Manchester City despite relative economic losses being heavily weighted in Manchester City’s favour.
We will cover selected Premier League fixtures although we also expect to highlight significant fixtures in other divisions and competitions throughout the season. There will also be a number of notable games including largest combined economic loss and profit between two clubs over a set period of time (usually 3 or 5 years).
Distribution of Matchday Metrics takes place via social media including Twitter (@seetrends and also under the following thread: #matchdaymetrics) and other media channels.
The official press release for the launch of Matchday Metrics can be found here.