The availability of finance to a football club at the lower levels of the professional or semi-pro game impacts on all facets of a football club. If inadequate funding is to hand then clubs may find themselves lacking all manner of essential items for them to function effectively as a business. Anything from matchday programmes, food supplies for stadium catering, staff for stewarding operations or other stadium personnel may be in short supply or withdrawn completely in the event of late-payment or unresolved disputes with suppliers.

Numerous examples exist of clubs that have run into these kinds of problems. In the Football League the cases of Plymouth Argyle and Bristol Rovers stand out this season. But lower down the football pyramid there is no shortage of clubs in crisis. Yesterday’s blog entry noted the dangers of promotion for non-league clubs, with improvements needed throughout a club as it rises through the levels. In addition, Football Conference requirements introduced in 2009 aimed at tighter financial regulation of clubs in the Bet Square Premier, North and South leagues.

Under the new regulations, clubs at this level must make quarterly reports on their financial position. Failure to comply brings financial penalties and possible transfer embargoes. One of the first to fall foul of these more stringent requirements was Rushden and Diamonds from the Conference, the level below the Football League. Rushden are a fascinating case study as they were formed from the merger of two former clubs (Rushden Town and Irthlingborough Diamonds), rose to the Football League under the ownership of Max Griggs of Dr Marten footwear fame, before crashing down to the non-leagues once again. The club was hit by a five-point deduction as part of the Conference Financial Reporting Initiative and is understood to owe suppliers and HMRC thousands.

The decline in revenue that affects all clubs as they fall through the levels of the game, is accentuated by the stubborn refusal of costs to fall in tandem. The case of Wrexham AFC illustrates this point. They were relegated from the Football League in 2008 and face another season in the Conference unless they can gain promotion through the playoffs. Wrexham have suffered financially and are in the process of finding new owners. Attendances just over 2,000 this season are a big part of the club’s problem. These gates compare with levels over 5,000 in the period when Wrexham were last in the Football League.

Managing a football club on a dwindling revenue base must be extremely challenging. But, as in all business organisations the imperative is to set budgets and then stick to them. In this way, expectations of fans, players and directors can be managed more effectively and cases where suppliers, tax authorities and even players not being paid on time can be avoided. It was therefore interesting to read of the ructions at Braintree Town FC, who lost their manager despite a victorious season at the top of the Conference South (two tiers below the Football League).

Often you hear of cases where clubs and managers part company due to differences of opinion or personality clashes. Perhaps there may be other reasons behind the falling-out, often involving the unwillingness of directors to release funds for player transfers. But in the case of Rod Stringer, it was the offence caused by Braintree’s offer of a replacement car that caused the split. Having achieved promotion to the Conference’s Bet Square Premier League, Stringer clearly felt that he deserved more than a second-hand Kia. His chairman disagreed, showing that where the lower leagues are concerned coats must certainly be cut according to the cloth available.