Man Utd glory days may be over as club runs out of money and luck

WATCHING live sport provides a welcome respite from the realities of life but examining the business models behind English soccer provides an opportunity to witness fantasy.

English professional soccer resides in a virtual world where the normal rules of economics and business do not seem to apply: or at least it did so until recently. The so-called richest clubs – particularly Chelsea and Manchester City – try to buy success by spending enormous sums on the inward transfer of players and on wages for them and managers. More often than not these “investments” result in massive losses. In the past week both clubs have admitted to losses that, when combined, amount to more than £130 million (£45m at Chelsea and nearly £90m at City) for the 12 months ended last June.

Since then City has spent another £118 million on new players, a sum to be added to this month, as well as compensation to be paid to sacked manager Mark Hughes.