Affinity savings accounts keep struggling football clubs afloat

A number of football league clubs will run out onto the pitch to start the new season this year thanks to the financial support of their loyal fans via affinity savings accounts, says Andrew Hagger of personal finance comparison site Moneynet.co.uk.

“Another new football season is kicking off and there are some pretty incredible figures being bandied around within premiership football,” says Hagger.

“But whilst some of the big boys can afford to splash out in excess of £20million for a new striker and pay wages of £120,000 per week, step outside the champagne lifestyle of the Premier league and it’s a totally different story.”

Many clubs in the Football League from the Championship through to League Two are living a hand to mouth existence with new cases of clubs facing administration every season.

“Those not lucky enough to have the backing of overseas multi-millionaire club owners or massive TV payouts to rely on need all the financial support they can get,” says Hagger.

“But fortunately for the clubs, many football supporters are willing to sacrifice interest income on their savings accounts on the understanding that the depleted coffers of their beloved team will benefit as a result.”

Supporters up and down the land have been saving in ‘affinity savings accounts’, in some cases for over ten years, and have helped pump millions of pounds into their favourite club.

“Affinity accounts won’t provide savers with a best buy return on their money - which could be earning 6.10% gross with the Chelsea BS Rainy Day savings account,” Hagger adds. “But many supporters are happy to sacrifice a higher rate of interest in return for being able to do their bit for their team.”

Britannia Building Society, Norwich & Peterborough BS and West Bromwich BS are the main providers of football savings accounts in the UK and between them have provided a valuable lifeline to clubs and, in particular, their youth academies.

Each year these societies present the football club with a cheque for 1% of the value of the combined daily average savings balance for all accounts held by its supporters.

Here’s the scorecard of money raised to date:

Norwich & Peterborough BS savers have contributed over £2.65 million to Norwich City FC over the last 11 years

Ipswich Town have benefitted to the tune of over £6 million in support of its youth development since the launch of an affinity account with Britannia BS

Over 16,000 fans save with the Stoke City FC Save and Support account and gave the club £990,768 in 2007 making a massive £5.7 million to date

Britannia BS has given Port Vale FC £2.2 million since1999 for future club developments thanks to more than 5000 fans who have signed up for an account

West Bromwich BS launched the first football affinity account in 1996 for West Bromwich Albion which has since raised £2.2 million to date.

For more information, visit moneynet.co.uk