Generic clubs in financial crisis Thread

[Thaumagurist*]

.

[havoc]

[leww_rfc]

[Row Z Royal]

Why?

They've had two decades of success, I want them to suffer now and maybe we'll see some other club dominate for a change.

Imbecile.

[Thaumagurist*]

.

[Row Z Royal]

Ooh, the cavalry's arriving.


The debt currently being discussed it that of the Glazers, not of United. Correct? If the current situation (where the owners can still at least maintain the debt) then United will just continue in the same vein.

And lol@ that article claiming that United fans were upset by not replacing Ronaldo with a player of similar stature and ability. Thought he was far and away the best player in the world when he was at OT.

[Thaumagurist*]

.

[TFF]

Man Ure.

[Row Z Royal]

The debt currently being discussed it that of the Glazers, not of United. Correct? If the current situation (where the owners can still at least maintain the debt) then United will just continue in the same vein.

I think they've lumped the debt onto Man Ure.

The debt is their's, secured against the club - like a mortgage. And like with a mortgage, if you can keep paying the interest, then there's no problem. And United run at an operating profit so they've mortgaged for the status, but it'll only actually cost them money if the club spends beyond it's income.

Have I got that right? (I'm not asking you, SpaceFace)

[Row Z Royal]

The debt is their's, secured against the club - like a mortgage. And like with a mortgage, if you can keep paying the interest, then there's no problem. And United run at an operating profit so they've mortgaged for the status, but it'll only actually cost them money if the club spends beyond it's income.

No, I think you have misunderstood. It is the club who are paying the interest on it. Where do you think the Ronaldo money went?

That's what I said (or at least meant to say).

While the club are profitable, it won't cost the Glazers any money.

[Row Z Royal]

Yes, clearly. They finished second in the League.

[Dirk Gently]

They also did it at the very worst time, just before the world credit market collapsed. So lots of the debts have been sold on willy nilly - some to some very dodgy companies.

Essentially, it's the difference between paying a mortgage and owning a house - Man Utd used to always make a healthy profit which was used to strengthen the team and, incidentally, to keep ticket prices low - they also had zero debt. Now they have masses of debt - yes they can service it, but it's £80M+ a year that they needn't be paying out. The club, the team or the supporters aren't any better off because of this - they're all definitely worse off.

Panorama tomorrow evening is to be recommended on this subject - it was due to be shown tonight but they hastily patched something together about the Cumbria gunman and moved the Football Finance one to tomorrow.

[Urinal Mint]

They also did it at the very worst time, just before the world credit market collapsed. So lots of the debts have been sold on willy nilly - some to some very dodgy companies.

Essentially, it's the difference between paying a mortgage and owning a house - Man Utd used to always make a healthy profit which was used to strengthen the team and, incidentally, to keep ticket prices low - they also had zero debt. Now they have masses of debt - yes they can service it, but it's £80M+ a year that they needn't be paying out. The club, the team or the supporters aren't any better off because of this - they're all definitely worse off.

Panorama tomorrow evening is to be recommended on this subject - it was due to be shown tonight but they hastily patched something together about the Cumbria gunman and moved the Football Finance one to tomorrow.

What channel and time? Thanks.

[Flyingkiwi]

Please, I'd love to see Man Utd plummet down the leagues....

+1

+ SEVERAL THOUSAND!

[Barry the bird boggler]

They also did it at the very worst time, just before the world credit market collapsed. So lots of the debts have been sold on willy nilly - some to some very dodgy companies.

Essentially, it's the difference between paying a mortgage and owning a house - Man Utd used to always make a healthy profit which was used to strengthen the team and, incidentally, to keep ticket prices low - they also had zero debt. Now they have masses of debt - yes they can service it, but it's £80M+ a year that they needn't be paying out. The club, the team or the supporters aren't any better off because of this - they're all definitely worse off.

Panorama tomorrow evening is to be recommended on this subject - it was due to be shown tonight but they hastily patched something together about the Cumbria gunman and moved the Football Finance one to tomorrow.

What channel and time? Thanks.

BBC1 at 22:35, an then BBC iplayer for a week or so

[PieEater]

Something doesn't quite add up on those figures, they paid £770m for ManU, using £500m borrowed and £272m cash, yet the ManU debt is now £700m. It looks like £200m of that cash was actually borrowed too and secured on their new asset. Am I missing something with the PIK and Red Football's £200m debt, or is Mr Gill talking out of his arse saying it's nothing to do with the club.

[TFF]

Soaring wages are threatening the stability of Premier League clubs, a report into football finances has said.

Premier League clubs spent 67% of their revenues on player wages during the 2008/09 season, Deloitte said.

Chelsea again topped the wages bill, at £167m, while Manchester City's wage bill soared from £54m to £83m.

"For every £100 that comes into Premier League football clubs, £67 goes out on the wage bill - that's too high," said Deloitte's Dan Jones

Thanks for that Dan.

The wage bills of Premier League clubs have recorded double-digit percentage growth for three years running. In 2008/09 they were up by £132m, or 11%, to £1.3bn.

Total wages have grown by 55%, or £474m, in that three-year period.

It's like a runaway train isn't it?

[Flyingkiwi]

http://www.smh.com.au/sport/football/ho ... -xt23.html

[TFF]

It would seem Cardiff's sugar daddy has still got the purse strings tight.

http://news.bbc.co.uk/sport1/hi/footbal ... 775247.stm

[Dirk Gently]

Plus Southend are facing another winding-up order they really are in deep trouble.

And Andy Burnham (who does know his stuff about football) has come out with a public "money has ruined football" distribe.