by Elm Park Kid »
02 Mar 2023 16:52
YorkshireRoyal99 It just leaves a bit of a sour taste in the mouth really. You'd have thought that they would have explored this previously, put this to bed and then we agreed our business plan, knowing that any breach of that would result in an automatic 6 point deduction then.
If this isn't a breach of our business plan and it is something that goes back before the business plan was agreed, does that mean that we could still face another 6 point deduction if we are found to have breached anything in those terms that we agreed to as well?
It all just screams to me as an absolute shitshow, from both the club and the EFL now to be honest.
Yes, I guess that we could face new points deductions if we are still in breech.
All of this is just a part of the general shit-show that is EFL financing. I've spent that last 2-3 years listening to the price of football podcast and I would highlight some of the points below:
1) Each individual PL club receives more TV income than the entire 72 EFL clubs combined. Getting promoted has the potential to increase the value of your club from £20-30m to £200-300m overnight. And establishing yourself in the league could double that.
2) Hence, losing £13m a season is absolutely nothing for an ambitious owner. You can see why some of the bigger clubs are actually happy to lose £50-60m. The rewards are just so huge.
3) When you consider parachute payments, clubs gambling to reach the PL, and 'sleeping giants' with 25k+ weekly attendances, the reality is that a club of Reading's size is always going to find it near impossible to compete in the league without running at a loss. The 13m loss permitted by the EFL is probably the bare minimum needed just to stay in the league.
4) The 'logical' approach for most clubs is to gamble heavily, and then pull the brakes hard if you fail. Either that or to find some very good accountants and lawyers that can help you get around a clearly patchy EFL framework.