Preston North End, one of the founding members of the English football league, is currently undergoing a strategic review with the assistance of investment bank Rothschild. This review, according to sources within the football industry, may potentially lead to a change in ownership for the Lancashire-based club.
The club, which finished tenth in last season’s Championship table, has not yet confirmed whether the review will result in a sale. However, sources have indicated that the current owners are open to discussions with potential buyers who can demonstrate a long-term commitment to the club’s future.
Founded in 1866 as a cricket club, Preston North End became a founding member of the Football League in 1888. The club is best known for its legendary player Tom Finney, who played for the club in the 1950s when they twice finished as runners-up in the top tier of English football.
Despite its storied history, Preston North End has spent much of the past few decades in the lower divisions. However, they have been in the Championship since their last promotion campaign in 2014-15. Unlike many of its peers, the club has enjoyed relatively stable ownership since 2010, when it was purchased by prominent businessman Trevor Hemmings following a winding-up petition served by HM Revenue and Customs.
Following Mr. Hemmings’ passing in 2021, the club is now managed by his family trustees, including two of his children. The late businessman was also known for his other assets, such as Blackpool Tower, and stakes in Center Parcs and Pontin’s.
Preston North End, like many English professional clubs, is currently operating at a loss. Its owners have been funding its losses at a rate of approximately £11 million per year. Since 2011, the club has been led by Peter Ridsdale, former chief of Leeds United and Cardiff City. Mr. Ridsdale also serves as one of the Championship representatives on the board of the English Football League.
While the potential sale of Preston North End is not yet certain, the club’s collaboration with Rothschild comes at a crucial time for the issue of professional football club ownership. This week’s King’s Speech included a bill that would establish an independent football regulator to oversee a strengthened owners and directors test. This regulator had been proposed under the previous Conservative government, with a recruitment process already underway for a chair for the new watchdog. The Labour party had also expressed support for this plan while in opposition.
In addition, discussions have been ongoing for over a year between EFL clubs and their top-flight counterparts about a financial redistribution deal, in response to mounting political pressure on the Premier League. However, no resolution has been reached yet.
Rothschild, a renowned advisor in the world of football and elite sports, is currently working on various ownership issues for top-flight clubs Brentford, Tottenham Hotspur, and West Ham United. Preston North End has been contacted for comment, but has not yet provided a statement on the matter.
