Sweet FA

by Sarah Modlock

25 May 2005

There are few things that get men - and some women - more passionate and excited than football. As Bill Shankly famously said: 'Football is not a matter of life and death. It's far more important than that.'

So in a sport where a top player's monthly wage could buy a house for a family of four, it's hardly surprising that people go mad with money when it comes to supporting their favourite team.

Football fever hit the Stock Exchange in the late 1990s when many football clubs floated and investors believed that it was a championship chance to cash in. Lucrative television rights were up for grabs and clubs had spent millions on ground improvements required by law after the Hillsborough disaster in 1989. But it was to be a false dawn. A combination of poor pay-per-view take-up and soaring players' wages has led to disappointment all round. Many blame the so-called 'Bosman ruling' allowing players to transfer without a fee which meant wages rocketed. With six figure weekly pay packets and multi-million-pound transfer fees, it's hardly surprising the City got cold feet.

Now that Chelsea has de-listed and Manchester United is set to follow suit if Malcolm Glazer has his way, you may not even have a chance to burn your cash on club shares. Liverpool is not quoted and to buy Arsenal shares you need to find someone who wants to sell - rare creatures indeed.

The figures are stark. In reality, most of Britain's 92 professional football clubs are losing money and UK football club shares have never come close to the performance of their FTSE counterparts. Still keen? Then you will be buying with your heart and not your head. Just don't count on getting your money back. There's only one Roman Abramovich. And it's not you.

If you really can't resist the chance to buy a tiny piece of the club you love then stick to the £29.99 shares packages offered on the internet as novelty gifts. Of course the frame you buy for the share certificate will probably end up being worth more than the shares themselves but at least you can feel part of the action without taking your bank balance offside. 'My advice to fans,' says Justin Urquhart Stewart, of stockbrokers Seven Management, ' Enjoy the scarves, enjoy the matches...but forget the shares.'

Show us your tackle

Football and finance are tackled on a smaller pitch at your local building society. It may not be as glamorous as wheeling and dealing on the stockmarket but you can open up an affinity savings account. I guess you could say it's the Gary Lineker of the finance world - safe and dependable. West Bromwich Building Society pays local clubs 1% of all balances held in each account at the end of the financial year. These include Aston Villa, Birmingham City, Chester City, Shrewsbury Town and Kidderminster.

Money from these accounts is often used for ground and youth development, as well as contributing to the long-term future of the clubs. 'Football Affinity Accounts have proved an outstanding success,' says Tony Dubberly of West Brom Building Society. 'The partnership between the club, the supporter and provider is crucial to the success of these schemes. We have been very fortunate in having partners who have worked as hard as we have to promote and publicise their accounts. Nevertheless, without the supporter, no one gains. It is therefore heart-warming to see the tremendous loyalty fans show to their clubs by taking out these accounts.'

Britannia Building Society does the same with Manchester United, Chelsea, Liverpool, Everton, Ipswich Town, Sunderland, Stoke City, Port Vale and most recently took Manchester City under their wing. Reminds me of an old Bernard Manning joke: 'The entire contents of the Manchester City trophy room have been stolen. Police are looking for a man carrying a light blue carpet.'

But there is a price to paid for your loyalty. Britannia's football accounts offer just 2% annual net interest on a deposit of £1,000. West Brom can't even manage that and pays out 1.92% on deposits up to £4,999. Even taking the club donation into account, this is a disappointing performance when you consider that many non-affinity accounts can offer more than 5% interest, especially if you opt for a telephone or internet-based account. Of course you should also make sure you can get at your cash when you need it and that you don't have to go into extra time and penalties for early withdrawals. Sorry, couldn't resist that.

Football affinity credit cards are also available. Samantha Owens of independent researcher Moneyfacts believes the interest they charge is now becoming increasingly competitive, with institutions such as Barclays offering the 0% deals that you would find on standard credit cards on their affinity cards. 'However, card providers are also becoming less forthcoming about the level of donation or the offers the fans will receive,' says Owens. 'Consumers should always weigh up the cost of the card with any donations or benefits they receive,' she advises.

And finally, if you're a football widow and feel that your other half loves 11 men more than he loves you, think again. British men are showing where their hearts truly belong by spending almost double on their lovers than they do on their football team. According to Virgin Money Credit Card, the average football supporter spends £805 pampering his partner throughout the year. In comparison, he spends £482 pounds following his team. So next time he disappears off on a Saturday just remember it's a game of two halves. And in the words of Ron Atkinson, that means that 'either side could win, or it could be a draw'.