Points deduction in the offing?
http://news.bbc.co.uk/1/hi/business/8468078.stm
Portsmouth relegation market
Football's finances are an absolute mess
There was a new series for football clubs in the South last night, hosted by Jonathon Pearce. When he was interviewed by South Today earlier, he indicated the Premier League are extremely worried about the finances of a certain PL club, and they're much bigger than Portsmouth!
I assume he's referring to Liverpool
There was a new series for football clubs in the South last night, hosted by Jonathon Pearce. When he was interviewed by South Today earlier, he indicated the Premier League are extremely worried about the finances of a certain PL club, and they're much bigger than Portsmouth!
I assume he's referring to Liverpool
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
There are plenty of clubs in very poor situations - there was a big feature on Man United in today's sports section of the Daily Telegraph. Here is a shorter version of it:
http://www.telegraph.co.uk/sport/footba ... years.html
Here is an example of the problems a lot of the clubs face:
"Annual interest on the £500m bond, expected to be about nine per cent, will cost United £45 million a year, or £315 million over the term of the bond. This figure could be increased, however, by potential dividends and fees to United’s parent companies, controlled by the Glazers.
As well as an immediate payment of £70m, the Glazers can take a dividend of £25m at any time during the life of the bond."
You just have to look at the sums the players are paid and cost, it just doesn't add up in the long term.
Portsmouth are the first of many in the next few years imo.
http://www.telegraph.co.uk/sport/footba ... years.html
Here is an example of the problems a lot of the clubs face:
"Annual interest on the £500m bond, expected to be about nine per cent, will cost United £45 million a year, or £315 million over the term of the bond. This figure could be increased, however, by potential dividends and fees to United’s parent companies, controlled by the Glazers.
As well as an immediate payment of £70m, the Glazers can take a dividend of £25m at any time during the life of the bond."
You just have to look at the sums the players are paid and cost, it just doesn't add up in the long term.
Portsmouth are the first of many in the next few years imo.
Figures don't add up at all and to be honest all of the European leagues need a wake up call.
Probably the best run (financially) club in the country is Arsenal and my club Ipswich (don't snigger and don't mention Prawn sandwiches to Roy!) would be bust if not for our resident multi-millionaire Marcus Evans (worth about 500m).
The players and agents are in control and no business model can work long term with the tail wagging the dog. On top of that footballs financies are pretty seedy still and who actually gets what when players are bought/sold? - certainly not your footie fan!
Don't be suprised to see Portsmouth lose a game 6-8 nil soon and the bookies/betfair reporting 'suspect betting patterns'. Where there's muck there's brass.
Probably the best run (financially) club in the country is Arsenal and my club Ipswich (don't snigger and don't mention Prawn sandwiches to Roy!) would be bust if not for our resident multi-millionaire Marcus Evans (worth about 500m).
The players and agents are in control and no business model can work long term with the tail wagging the dog. On top of that footballs financies are pretty seedy still and who actually gets what when players are bought/sold? - certainly not your footie fan!
Don't be suprised to see Portsmouth lose a game 6-8 nil soon and the bookies/betfair reporting 'suspect betting patterns'. Where there's muck there's brass.
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CaerMyrddin
- Posts: 1271
- Joined: Mon Sep 07, 2009 10:47 am
Hi, could anyone tell me where I can get the court decision on firsthand on the 10th February?
Situation in Portugal is somewhat strange I guess. The major clubs are all under big debt with no perspectives of millinaire income. They all have sold the tv tranmissions for a lot of years and every single season spend a load of €€ buying more players.
Where does the money come from? The banks. I suspect the banks are taking these bad credits (like they took those that lead to the subprime crisis) wrongly assuming that the clubs are too big to go down. I agree with them, Benfica for instance is never going down, but what about the credit? Look at what happenned with Fiorentina, sometime ago... The credit holders got their hands burnt
Situation in Portugal is somewhat strange I guess. The major clubs are all under big debt with no perspectives of millinaire income. They all have sold the tv tranmissions for a lot of years and every single season spend a load of €€ buying more players.
Where does the money come from? The banks. I suspect the banks are taking these bad credits (like they took those that lead to the subprime crisis) wrongly assuming that the clubs are too big to go down. I agree with them, Benfica for instance is never going down, but what about the credit? Look at what happenned with Fiorentina, sometime ago... The credit holders got their hands burnt
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CaerMyrddin
- Posts: 1271
- Joined: Mon Sep 07, 2009 10:47 am
No answer yet and already with another doubt:
Is there a chance of getting ripped by an 'inside' trader? If find this chance somewhat likely to happen, I would like to know how you guys feel about this risk and if you think that betfair and other operators should be monitored for inside trading like the stock exchanges are...
Is there a chance of getting ripped by an 'inside' trader? If find this chance somewhat likely to happen, I would like to know how you guys feel about this risk and if you think that betfair and other operators should be monitored for inside trading like the stock exchanges are...
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andyfuller
- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
Say it all:
http://news.bbc.co.uk/sport1/hi/footbal ... 473694.stm
£110million in debt but still willing and seem to think they can pay a single person £100,000 a week. It is an arms race which is just going to blow up in peoples faces sooner or later - it is just unsustainable!
http://news.bbc.co.uk/sport1/hi/footbal ... 473694.stm
£110million in debt but still willing and seem to think they can pay a single person £100,000 a week. It is an arms race which is just going to blow up in peoples faces sooner or later - it is just unsustainable!
Got to be value in this market, they can't even pay their web site bill on time and it looks like January wages will be late. If 10 points get deducted they are as good as relegated.
http://www.dailyexpress.co.uk/posts/vie ... huts-down/
http://www.dailyexpress.co.uk/posts/vie ... huts-down/
I say this with no malice, but I think Pompey will go bankrupt.
Who on earth is going to buy a club with £65M of debts when most of their best players have already been sold. They have a rubbish old stadium that only holds 21k, which they can't even fill. The ground is in the middle of a rough housing estate, so is worth very little to developers. To make matters worse, they don't even have a training ground - they share with Eastleigh from Blue Sq Sth.
They are basically a business with enormous debts and no assets
Who on earth is going to buy a club with £65M of debts when most of their best players have already been sold. They have a rubbish old stadium that only holds 21k, which they can't even fill. The ground is in the middle of a rough housing estate, so is worth very little to developers. To make matters worse, they don't even have a training ground - they share with Eastleigh from Blue Sq Sth.
They are basically a business with enormous debts and no assets
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lilgreenback
- Posts: 211
- Joined: Thu Apr 16, 2009 11:28 am
I think it's OK to chortle at others miss-fortune but I think what LeTiss said at the begining of this thread is true football is a financial mess.
In some way there but for the grace of god goes a lot of clubs. It's gonna be sad seeing Chelski and Man Al Citi battling in out for 1st and 2nd when the rest of the Prem are out of business.
I'm a Liverpool fan for my sins; Shanks and Paisley would be doing revolutions seeing whats going on there. I myself see no pleasure in any of the teams going t**s up not even Manc U or the lot across Stanley Park. At the end of the day football has brought this on it's self and they will stand or fall together as there will be a domino effect.
Cheers
LilGB
In some way there but for the grace of god goes a lot of clubs. It's gonna be sad seeing Chelski and Man Al Citi battling in out for 1st and 2nd when the rest of the Prem are out of business.
I'm a Liverpool fan for my sins; Shanks and Paisley would be doing revolutions seeing whats going on there. I myself see no pleasure in any of the teams going t**s up not even Manc U or the lot across Stanley Park. At the end of the day football has brought this on it's self and they will stand or fall together as there will be a domino effect.
Cheers
LilGB
I agree, the whole thing is in a right mess. I think the biggest problem is that football has lost its soul. I remember paying £1.50 to stand on the terraces, get pushed about, smoke blown in my face etc. But it was great back then and you felt like anything was possible.
Now you have to pay a fortune to see a team in santised surroundings and you probably wont win anyhow as the other team has bought all the best players in the world by leveraging up with £1bn in debt. OK stadiums are much more family friendly and safer but the fare on the pitch is much less entertaining and socially interactive than many years ago.
I've quite enjoyed watching lower league football recently as it seems there is still a lot of spirit there. I've no doubt there is elsewhere but it's difficult to see sometimes it gets drowned out. I have a friend that worked for Samsung so I would often go to see Chelsea. Half the stand was full of South Koreans who had no idea what was going on. I think that sort of summed it up for me. That and when a Man U fan complained to me that they only drew 1-1 with Juventus in the champions league. I was just happy to be there watching it!
Now you have to pay a fortune to see a team in santised surroundings and you probably wont win anyhow as the other team has bought all the best players in the world by leveraging up with £1bn in debt. OK stadiums are much more family friendly and safer but the fare on the pitch is much less entertaining and socially interactive than many years ago.
I've quite enjoyed watching lower league football recently as it seems there is still a lot of spirit there. I've no doubt there is elsewhere but it's difficult to see sometimes it gets drowned out. I have a friend that worked for Samsung so I would often go to see Chelsea. Half the stand was full of South Koreans who had no idea what was going on. I think that sort of summed it up for me. That and when a Man U fan complained to me that they only drew 1-1 with Juventus in the champions league. I was just happy to be there watching it!
Last minute deal with HMRC fails!
http://news.bbc.co.uk/sport1/hi/footbal ... 505321.stm
Portsmouth still face a winding-up hearing after Her Majesty's Revenue and Customs rejected a cash offer from the football club, BBC Sport understands.
Pompey offered a down payment of £1.5m to settle debts of about £7m but HMRC wants £4m, BBC Sport understands.
So Portsmouth face a High Court winding-up hearing at 1130 GMT which could result in the club entering administration or being liquidated.
The club will offer £1.5m up front and the remaining £2.5m within 28 days.
http://news.bbc.co.uk/sport1/hi/footbal ... 505321.stm
Portsmouth still face a winding-up hearing after Her Majesty's Revenue and Customs rejected a cash offer from the football club, BBC Sport understands.
Pompey offered a down payment of £1.5m to settle debts of about £7m but HMRC wants £4m, BBC Sport understands.
So Portsmouth face a High Court winding-up hearing at 1130 GMT which could result in the club entering administration or being liquidated.
The club will offer £1.5m up front and the remaining £2.5m within 28 days.