Groundsharing 'a necessity'

Hibernian and Hearts are in talks about sharing a ground

Motherwell administrator Bryan Jackson says Britain's football clubs must share grounds in order to survive.

A survey of finance directors from top clubs in England and Scotland has found that the majority would now consider such arrangements.

Hearts and Hibernian are already involved in controversial discussions about a new joint stadium in Edinburgh as they seek to clear mounting debts.

But Jackson says that, in an ideal world, clubs themselves would merge.

"The reality is that there are too many clubs in Scotland and England," he told BBC Radio Scotland.

"Merging is too horrendous a thought for most people, but I think that groundsharing will probably happen.

"Indeed, I think it must happen."

Jackson blames the high salaries of players for much of the financial recession that has struck football and the second annual report by his company, Pannell Kerr Forster, has found that performance-related pay is becoming the norm.

The next two years will be crucial for smaller clubs PKF partner Stuart Barnsdall

"Fixed contracts in particular have caused problems with television revenues and other revenues coming down," he said.

Business advisers PKF surveyed 21 finance directors - 15 from the English Premiership and First Division clubs and six from the Scottish Premier League - and found that, despite the collapse of the transfer market, 24% expect their clubs to make a profit this year.

But finance directors expect further hardship in the future.

All the Premiership clubs surveyed said that the potential fall in television income once the current deal with Sky expires has taken over from spiralling salaries as their main concern.

The number of finance directors who admit that they would consider groundsharing has risen from last year, from 14% to 40% among the English clubs and 33% in Scotland.

Despite the gloomy outlook, 30% of Premiership clubs surveyed expect to make a profit this year, while a fifth of First Division clubs feel they will be profitable compared to just 17% north of the border.

That could be down to the introduction of performance-related pay, with 71% of clubs now implementing salary packages that reflect success or failure on the pitch.

But wages remain a major talking point and First Division clubs are overwhelmingly in support of a salary cap, with 80% in favour, in contrast to just 10% in the Premiership and 50% in the SPL.

Bryan Jackson (centre) was called in to help save Motherwell

PKF partner Stuart Barnsdall said: "The next two years will be crucial for smaller clubs.

"Never before has the polarisation within football been so apparent, with the elite of the game clearly running away with the spoils.

"With the market for football now proven to be finite and largely restricted to the most powerful, those who do manage to survive face the prospect of re-inventing their business models based on non-TV related income targeted at a local market.

"Clubs who fail to respond to the changing environment are unlikely to exist in the long term."

While the Premiership still sees TV income as its most important revenue stream, ticket sales are now the most important source of revenue for the English First Division and SPL - reinforcing the view that a loyal local fan base is critical to their survival.

Although 80% of Premiership clubs are happy with the operation of transfer windows, only 20% of First Division clubs and 33% in the SPL clubs share their satisfaction.