Generic clubs in financial crisis Thread

[Mr Angry]

If they cleared Chanrai's loan surely they could secure their debt as he did, so they may get something back if and when they ever managed to sell the club on again.

IIRC the land is only worth £3m but he has £17m of loans secured on it.

That would be only part of a solution though; anybody wanting to buy the club would have to address both Chainrai's debt AND deal with another former owner Alexandre Gaydamak - who owns the land around the ground.

So not only are the club debt ridden and with no obvious means of paying off those debts, but you then have the added complication of needing to deal with 2 former owners who still have a legal interest in the club and the capability to stop any plans you may have to improve the situation.

Add to that the general economic downturn, and you are left with the stark reality that finding ANY buyer in those circumstances would be nigh on impossible, but to find one in a few weeks??

[Barry the bird boggler]

Shoot it and stick the replacement in the Combined Counties League

[Friday's Legacy]

Gus Poyet has insisted clubs who go into administration should be relegated.

The Brighton boss believes teams like Pompey are ‘cheating’ by overspending and then calling in administrators.

Poyet said: ‘I’ve got a clear view of that and I’m not talking about Portsmouth exclusively.

‘I would be more severe with any club, because it is people that, right or wrong, are cheating the competition.

‘They try to spend what they don’t have to see if they can get up, and if they don’t they go into administration.

‘It shouldn’t be like that. For me categorically I would like the teams that get into that down, not ten points, down.

‘Then we will see how the teams are going to react and who is going to take responsibility.

‘That is the other point. Somebody needs to be responsible.’

absolutely spot on. that is the least it should be.

[mx]

Shoot it and stick the replacement in the Combined Counties League

Sydenhams Wessex League covers their patch better. But agreed.

[From Despair To Where?]

Gus Poyet has insisted clubs who go into administration should be relegated.

The Brighton boss believes teams like Pompey are ‘cheating’ by overspending and then calling in administrators.

Poyet said: ‘I’ve got a clear view of that and I’m not talking about Portsmouth exclusively.

‘I would be more severe with any club, because it is people that, right or wrong, are cheating the competition.

‘They try to spend what they don’t have to see if they can get up, and if they don’t they go into administration.

‘It shouldn’t be like that. For me categorically I would like the teams that get into that down, not ten points, down.

‘Then we will see how the teams are going to react and who is going to take responsibility.

‘That is the other point. Somebody needs to be responsible.’

absolutely spot on. that is the least it should be.

And with a situation like Leeds where they go into administration when it is confirmed that they are going down anyway, they should be relegated another division.

[Terminal Boardom]

The football authourities really need to get a grip. They are sitting in their ivory towers allowing clubs to be mismanaged and run up debts that can not be serviced.

Any club in debt should have a clear financial strategy identifying exactly how they will remove that debt. Failure to keep to the strategy should result in clear-cut sanctions which, depending on the severity of the debt could result in expulsion from the league. Reading have shown how it is possible to keep finances under control and proven that you do not need to spunk 20-30k a week on players.

[FiNeRaIn]

[quote="Terminal Boardom" Reading have shown how it is possible to keep finances under control and proven that you do not need to spunk 20-30k a week on players.[/quote]

But we did though, if you are to read the financial reports when we were relegated...we were paying exactly that, around 20k per week on average. Its reduced now, but it took a few seasons.

[Terminal Boardom]

[quote="Terminal Boardom" Reading have shown how it is possible to keep finances under control and proven that you do not need to spunk 20-30k a week on players.

But we did though, if you are to read the financial reports when we were relegated...we were paying exactly that, around 20k per week on average. Its reduced now, but it took a few seasons.[/quote]


Slight difference was we were operating at a profit!

[FiNeRaIn]

only by flogging players, it wasnt really a well thought out astute plan as we were relying on other clubs to make significant bids and our players being wanted in the first place.

[Terminal Boardom]

only by flogging players, it wasnt really a well thought out astute plan as we were relying on other clubs to make significant bids and our players being wanted in the first place.

Sure, we gambled in 2008/09 and missed out on promotion by a narrow margin. That was when the cloth cutting started across the board. Did Pompey do this? No! They went into administration before they were relegated yet kept the high wage earners on board and then added to them!

What else could Reading have done after defeat in the play-offs to Burnely? Hike up the prices? Hardly! They had to sell - plus, there were players happy to move to the Prem - being wanted helped! That's why I have been critical of the Marketing people at RFC. I don't think they did nearly enough to get money into the club via other means. Now with TSI waiting in the wings, it looks as if the future is very bright. The team is successful on the pitch, crowds are good and there is probably a feel good factor about the place.

RFC have shown how to do it. Why don't the authorities take note and ensure that all clubs follow Reading's example? Or at least a hybrid of it rather than burying their heads while Pompey twitch nervously.

[Wax Jacket]

only by flogging players, it wasnt really a well thought out astute plan as we were relying on other clubs to make significant bids and our players being wanted in the first place.

I would say that's pretty spot-on planning - buy players young and sell them on for huge profits. Reading have done it three times and saw good profit from Mills too - it's not by accident.

[cmonurz]

The football authourities really need to get a grip. They are sitting in their ivory towers allowing clubs to be mismanaged and run up debts that can not be serviced.

Any club in debt should have a clear financial strategy identifying exactly how they will remove that debt. Failure to keep to the strategy should result in clear-cut sanctions which, depending on the severity of the debt could result in expulsion from the league. Reading have shown how it is possible to keep finances under control and proven that you do not need to spunk 20-30k a week on players.

Completely agree.

[handbags_harris]

The major difference between Finerain's (perfectly valid) point is that we gambled on one season and were prepared to do what was necessary if it didn't come off. Many, many other clubs didn't (Sheff Utd for example) and have paid the price since.

[Wax Jacket]

Sheff U went one step further and bought a whole other club!

[Mr Angry]

Interesting article a few days ago about Birmingham...

http://www.dailymail.co.uk/sport/footba ... eague.html

[Rev Algenon Stickleback H]

Great Stuff for Glagow Rangers that I read today.

They issued a donation scheme with this picture




The paypal address should have been @THEbluenose.co.uk

Instead, fans who donated actually donated to this site http://bluenose.co.uk/mr.custard.htm ....a clown who does children's parties in the Kettering area.

[FiNeRaIn]

Don't see the problem, both good causes.

[wolsey]

Great Stuff for Glagow Rangers that I read today.

They issued a donation scheme with this picture




The paypal address should have been @THEbluenose.co.uk

Instead, fans who donated actually donated to this site http://bluenose.co.uk/mr.custard.htm ....a clown who does childrens' parties in the Kettering area.

Could have been worse - could have been a papal address

[Franchise FC]

If Rangers are found NOT to have been in administration at all, do they get their 10 points back ?

[Friday's Legacy]

Interesting article a few days ago about Birmingham...

http://www.dailymail.co.uk/sport/footba ... eague.html

they're losing £200k a week. utterly ridiculous.

the bank has withdrawn their over-draft and their own is verging on prison. i don't think they'll get promoted either, and they deserve everything they get if they are a championship club come the summer.