Generic clubs in financial crisis Thread

[Svlad Cjelli]

Strange that Risdale thinks he can blast at finances when he's had in hand in many an administration pie. (and I don't recall Charlton going into admin recently)

I think he's trying to say "it's not me, it's the system."....

[The Real Sandhurst Royal]

Peter Reid get sacked when the club are in administration.

Of course, I see it, Plymouth demise and admistartion is all down to one man Peter Reid!!!

[Jackson Corner]

Reckon he might have to wait a while for his compo?

[YateleyRoyal]

Carl Fletcher appointed as caretaker.

[Barry the bird boggler]

Carl Fletcher appointed as caretaker.

Wasn't he sent off in their last game....

[T.R.O.L.I.]

Yep - violent conduct.

[roadrunner]

Truro have been issued with a winding up order.

[T.R.O.L.I.]

Truro have been issued with a winding up order.

Aren't the Truro owners the very same people who are supposedly buying Plymouth?

Yep although this appears to be little more than HMRC throwing their toys out of their pram without speaking to Truro first:

Truro say that the action by the tax authorities is unjustified.

"Her Majesty's Revenue & Customs have taken an unduly aggressive approach to a tax liability by issuing a winding-up petition," a statement said.

The club state they approached HMRC to enquire about their tax bill.

"The background to this matter is that TCFC were chasing HMRC and only recently were advised of the amount of debt due," the statement from the club's lawyers said.

"This was as a result of HMRC failing to demand this debt over the last two years.

"TCFC has previously been in dispute with HMRC over wrongly assessed VAT and this was settled in TCFC's favour," the statement went on to say.

I can see HMRC's standpoint on this given the Porstmouth debacle but you'd think they'd speak to the club first prior to issuing a winding up order.

[Svlad Cjelli]

"Her Majesty's Revenue & Customs have taken an unduly aggressive approach to a tax liability by issuing a winding-up petition," a statement said.

The club state they approached HMRC to enquire about their tax bill.

"The background to this matter is that TCFC were chasing HMRC and only recently were advised of the amount of debt due," the statement from the club's lawyers said.

"This was as a result of HMRC failing to demand this debt over the last two years.

That doesn't exactly inspire confidence in Truro's accountancy practices - did they not notice the lack of tax bills over the past 2 years, or make contingency for this?

[Royal Rother]

That statement from Truro is smokescreening bollocks.

[T.R.O.L.I.]

"Her Majesty's Revenue & Customs have taken an unduly aggressive approach to a tax liability by issuing a winding-up petition," a statement said.

The club state they approached HMRC to enquire about their tax bill.

"The background to this matter is that TCFC were chasing HMRC and only recently were advised of the amount of debt due," the statement from the club's lawyers said.

"This was as a result of HMRC failing to demand this debt over the last two years.

That doesn't exactly inspire confidence in Truro's accountancy practices - did they not notice the lack of tax bills over the past 2 years, or make contingency for this?

Maybe they did - hence why they were "chasing HMRC for the debt due" (sic). No point paying the wrong amount as HMRC would only end up slapping them with a fine.

[Svlad Cjelli]

http://www.insolvencynews.com/article/show/Football-clubs-open-to-attack

Football clubs “open to attack”

Report reveals cost pressures on top teams

By Insolvency News, 16 September 2011. Posted in Corporate

Football clubs are taking unprecedented steps to keep costs under control as tough new rules start to close in on their financial management.

A 10th annual survey of football club finance directors, published by accountancy firm PKF, reveals that clubs face uncertain revenues and new financial regulations, principally the Financial Fair Play rules from UEFA, the European governing body for football, along with similar rules for Football League teams.

The study, Open to Attack, surveyed teams from the English Premier League, Football League Championship, Football Leagues One and Two, and the Scottish Premier League. It reveals that ticket sales remain the most important source of
revenue for clubs, yet 51% of respondents reported a fall in match ticket sales last season.

Merchandising sales have been badly hit, with 54% of clubs stating that revenue in this area had fallen. In total, 37% saw merchandising sales drop by more than 5%.

...............

[Royal Rother]

The future is very very bleak for many clubs, that's for sure.

I wonder how many full time professional clubs will be left in 2017.

[Svlad Cjelli]

Strangely wages are forever spiraling out of control.
Some clubs just keep going in deeper and deeper, they're like compulsive gambling addicts.
"I just have to play another hand of poker, I know I can win it all back!"..

I really hope some of these crooked bastards go bankrupt soon, this system of going into administration and then just accumulating new debts the next fiscal year, has got to be dealt with. Someone has to change the legislation, I can't see how that can be allowed to go on.

Certainly the Football Creditors Rule - which is half of the problem - will be going.

If nothing comes out of the DCMS enquiry it'll be that.

[Barry the bird boggler]

So do we have timescales as to when any DCMS recommendations will be taken up .....

[Friday's Legacy]

The future is very very bleak for many clubs, that's for sure.

I wonder how many full time professional clubs will be left in 2017.

by 2017? only 5 and a bit years time? most clubs! we might see one, possibly two go bust but i'd be surprised still. there is far too much leniency with hmrc and the fa, premier league and football league.

[Svlad Cjelli]

So do we have timescales as to when any DCMS recommendations will be taken up .....

Within the lifetime of this parliament.

[Ian Royal]

The future is very very bleak for many clubs, that's for sure.

I wonder how many full time professional clubs will be left in 2017.

by 2017? only 5 and a bit years time? most clubs! we might see one, possibly two go bust but i'd be surprised still. there is far too much leniency with hmrc and the fa, premier league and football league.

LOL @ HMRC being lenient. Toothless, perhaps, but they're issuing winding up orders left right and centre.

[T.R.O.L.I.]

Small article on Reading's finances in today's Guardian:

http://www.guardian.co.uk/football/2011 ... ki-reading

The Reading owner, Sir John Madejski, has said that he would only accept a billionaire buyer for the Championship club .

When Reading's owner put his club up for sale, he did so using language unbecoming of a knight of the realm. "If some rich bastard wants to buy it they can. They have to be billionaire status," Sir John Madejski said. That will no doubt come as a big disappointment to all mere millionaire rich bastards who might have been eyeing Reading as a potential investment opportunity. For Reading, unlike many Championship clubs, is a bit of a cash cow.

The net cash profits after player trading aggregated over the two seasons following their relegation from the Premier League in 2008 were a little under £7.5m. Due to the high level of booked accounting charges, the club got to keep it all since there was no exposure to tax. After forcing down ongoing costs, such as wages, from £31m in the Premier League to £18.1m in 2010, that is a pretty good return.

Considering this was achieved while delivering on HSBC's demands that Reading repay their £6m-plus overdraft, the picture is hugely complimentary. Even when the Premier League parachute payments ran out in 2010, costing the club £12.4m in broadcasting income, there are signs that Reading could break even. It is harder to read Reading's fortunes in 2010-11 since no books are publicly available. But assumptions suggest that, with the sale of Shane Long to West Bromwich driving about £6m in net profit on player trading, the club made a comfortable cash profit last season.

Potential buyers should not be deterred by what the accounts state is a total squad value of £3.3m, since players such as the Wales internationals Hal Robson-Kanu and Simon Church are worth more than that on their own. They say football investment is one way to make rich men poor, but – although they sit only 15th in the Championship – Reading is one club that could buck the trend.

[Wax Jacket]

Simon Church worth more than £3m



sort of puts a doubt in my mind regarding the article