Press Release

POOR SCORES FOR CHAMPIONSHIP LEAGUE CLUBS

Latest Equifax data reveals the financial woes below the Premier League

London, 9th January 2010 - There almost isn't a day that goes by without news of a football club facing financial difficulty. And, whist the financial woes of some Premiership Clubs are in the press almost daily, the latest research from leading business information provider, Equifax, suggests that the Championship League clubs are a great deal more vulnerable than those in the generally gilded circle of the Premier League.

In the fiercely competitive Championship League, which has no booming television deal and is skewed by the presence of relegated sides with millions of pounds worth of parachute-payments per season, clubs appear to be seriously overspending as they chase the gold of Premier League promotion. It's perhaps, therefore, no surprise that over half the clubs are listed as insolvent by the Equifax ScoreCheck service, including Nottingham Forest, Sheffield Wednesday and Bristol City.

However scoring at the top of the ScoreCheck table is Plymouth Argyle, with a credit rating of 85 points. Even though the club is struggling on the pitch, it is to see a boost in its finances with recent news that Joe Plumeri, Willis chairman and chief executive, has invested a six-figure sum in the club.

Interestingly, West Bromwich Albion (WBA) is not only second in the League table, but second in the Equifax ScoreCheck table with 83 points. Derby follows closely behind with 61 points. At the bottom of the ScoreCheck table, Middlesbrough and Blackpool, both score a zero credit rating.

"There's no denying that it's a challenging season for the Championship League" commented Neil Munroe, External Affairs Director, Equifax. "Not only is it seeking a new title sponsor after rejecting an offer from Coca-Cola to extend its deal. But sponsors at Championship level are often more local than the blue-chip companies who associate with Premier League names. And with many of these types of sponsors probably having to juggle finances in their own businesses, money is certainly tight for spending on supporting football, which is likely to have an impact on the clubs' financial status.

"Every business is facing tough times and our latest analysis shows that the business of football isn't immune. A consumer-spending driven business, like retailers the football clubs are likely to continue to struggle in 2010 as consumers keep a close eye on their non-essential spending. And that means more fans could decide splashing out on a season ticket is too much of a luxury. And, of course, if they're not at the football ground there's less chance of them spending on other club items."

EQUIFAX'S CHAMPSIONSHIP LEAGUE SCORECHECK RATINGS TABLE

Club	Score out of 100	Insolvent
Plymouth Argyle	85	A
West Bromwich Albion	83	A-
Derby	61	C+
Reading	54	C-
Scunthorpe	52	C-
Watford	42	D
Barnsley	39	I
Sheffield United	30	E+
Ipswich Town	26	I
Queen's Park Rangers (QPR)	16	F+
Nottingham Forest	13	I
Newcastle	11	I
Bristol City	10	I
Leicester City	9	I
Preston North End	8	F
Doncaster Rovers	8	I
Cardiff City	4	I
Peterborough	4	I
Sheffield Wednesday	2	I
Swansea City	2	I
Crystal Palace	2	I
Coventry	2	I
Middlesbrough	0	I
Blackpool	0	I

Equifax ScoreCheck
Equifax ScoreCheck delivers a dynamic score for all limited companies based on all the information available. It examines a number of financial indicators, which build a complete picture of a company’s risk status. These include:
Accounts Data
Age of Accounts
Trading Stability
Profitability
Working Capital
Gearing
Legal and Court Information

Guide to ScoreCheck Grades
ScoreCheck calculates risk based upon a scale of 0 to 100; the lower the Score the higher the credit risk.

ScoreCheck Ratings & Grades
95 - 100 A+
85 - 94 A
80 - 84 A-
75 - 79 B+
70 - 74 B
65 - 69 B-
60 - 64 C+
55 - 59 C
50 - 54 C-
45 - 49 D+
40 - 44 D
35 - 39 D-
30 - 34 E+
25 - 29 E
20 – 24 E-
15 - 19 F+
5 - 14 F
0 - 4 F-

ScoreCheck codes
A                     Very Good Score
B                     Good Score
C                     Higher Than Average Score
D                     Average Score
E                     Lower Than Average Score
F                      Low Score

For further press information please contact: Wendy Harrison, Cecile Stearn, Margot Tomkinson or Jenny Staniforth at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: margot@harrisonsadler.com