Financial Warnings from Portsmouth Chairman Michael Eisner
Michael Eisner, chairman of Portsmouth Football Club, has issued a warning about an impending financial crisis within the Championship after Portsmouth reported losses, joining several other second-tier clubs facing similar difficulties.
Portsmouth recorded a £4.36 million loss for the 2024-25 financial year. Although this figure is smaller compared to Hull City's £41.7 million loss reported in December and Coventry City's £21.6 million loss announced last month, it reflects a concerning pattern across the division.
Eisner, aged 84 and former CEO of Disney, expressed his concerns about the growing financial imbalance in English football, where the wealth concentrated in the Premier League obscures the challenges faced by lower tiers.
"There are dark clouds hovering over the English football pyramid and it seems to me there could be a real collapse where only the Premier League survives," said Eisner.
"Every single club in the Championship lost money last year. The combined operating loss of the 24 teams for the last full set of published results in 2023-24 was £411m.
"No club can survive for the long-term in this system and if that continues, catastrophe will happen.
"If the forces that control the pyramid from the top tiers to the bottom tiers do not make football more sustainable and do it quickly, those dark clouds will deliver more soaking red ink beyond what one can imagine.
"We need effective player salary cost controls, real attention to fairer distribution of media revenues and for English football to join the rest of the sports world in more advanced commercialisation of the broadcast and streaming product.
"My family is walking headstrong into this storm, but if I was a historic fan in Portsmouth, I'd scream for change in the structure to protect the beautiful game and our clubs and their communities for generations to come."
Portsmouth’s Financial Position and Ownership Support
Portsmouth's turnover nearly doubled to £24.5 million in their most recent accounts, largely due to their promotion to the Championship. However, this increased revenue was offset by higher squad costs.
As Portsmouth strive to maintain their Championship status this season, the club remains heavily dependent on financial support from the Eisner family, who have invested £54 million since acquiring the club in 2017.
Andrew Cullen, Portsmouth's CEO and former CEO of MK Dons and Norwich City, highlighted the financial challenges faced by the club.
"It's a crazy division to be in and one that becomes increasingly reliant on owners that continue to fund the operations," Cullen told BBC Radio Solent.
"The accounts show that we have required £9 million already in the first half of the season from the owners to increase the player budget in the 2025-26 season.
"Going beyond January 1 we have required additional resources as well from the owners so that figure of £54 million which shows their total investment to date will increase significantly more by the time the 25-26 accounts come out."
Previously, the club was funded through share equity, but last year the Eisner family began providing funds via loans, starting with an £8 million arrangement. This shift has caused concern among some Portsmouth supporters.
Cullen sought to reassure fans regarding the loan arrangements.
"I want to give a number of reassurances to supporters that no repayments have been made on these loans and there is no intention for the owners to seek any repayment on these loans for some time," he said.
"Every other Championship club has carried debt and in Portsmouth's case, these new loans form part of the ownership's long-term succession strategy to ensure the long-term security of the club."
Proposed Financial Regulations in the Championship
Championship clubs are set to vote on new salary cost regulations for the upcoming season. The proposed rules would limit spending on players, managers, and agents' fees to 85% of a club's revenue.
Additionally, there is a proposal to cap owner investment at £33 million over three seasons, with a maximum of £15 million allowed in any single season.
Cullen emphasized the necessity of these controls.
"We need to try to get some control over costs in the Championship which have just spiralled beyond all reason," added Cullen.
Recent Ownership Changes
Michael Eisner has recently transferred minority shareholdings at Portsmouth to his three sons, continuing the family's involvement in the club's ownership and management.
