by SCIAG »
10 Apr 2020 18:32
Terms like debt, investment, and borrowing shouldn’t be dirty words. We were eight figures into debt thanks to Mr Madejski’s investment in our stadium, but it allowed us to grow massively. Mr Madejski received a return on his investment - without some promise of that he might not have done it and we might still be playing at Elm Park. I don’t think we should stop other clubs benefiting in the same way.
The issue is when you take on debt in order to pay wages. That can work - see Roberts, Jason - but only if the player increases your revenue enough to make up for the debt. Most of the time that’s going to require promotion, and only 3 in 24 clubs will get promoted in any year - if 20 of them are gambling on promotion then at least 17 are going to lose.
My solution? Remove the incentive to gamble.
FFP in the Championship died the second they let QPR get off scot free.
If when you publish your accounts in April, it transpires that you can’t afford your wages and transfer fees, then you’re not allowed to be promoted.
I think I’m probably missing something simple - are accounts perhaps published on a 12 month lag with no way to get around that? - but the major issue isn’t with the current rules, it is the penalties for breaking them.