Generic clubs in financial crisis Thread

[handbags_harris]

(I'll never moan about the various happenings at RFC ever again).

Quoted for posterity.

I'll give it a week...

viewtopic.php?f=1&t=111028

Well that lasted a long time then

[Rev Algenon Stickleback H]

Big Sam sharing his obvious financial acumen - in short, "not being able to spend more than you earn will kill clubs"

http://www.mirrorfootball.co.uk/news/We ... 50692.html

Allardyce said: “I accept there is a need to ­address ­issues ­related to ­finances, but these financial fair play rules will destroy the dream for many clubs. You are ­effectively ­taking away the golden egg if clubs are prevented from spending more than they earn. The gulf ­between the ­Premier League and ­Football League will just widen and be almost ­impossible to bridge.”

As Bolton manager, Sam experienced the joy of ­gaining promotion to the top flight and he acknowledges the balancing act that club owners face.

“I accept owners have an obligation to ensure clubs are run on a ­financially sound footing and they don’t over-extend to the point where they can’t service debt,” he said. “But in order to compete you have to spend. As it is, the clubs ­coming down from the ­Premier League have a ­distinct ­advantage over their rivals with four years of ­parachute payments.

“That will become an even bigger advantage if these ­financial fair play rules are ­introduced next season. I think the idea that you will get penalised if you spend outside the ­structure that is put in place is ­madness. Surely it’s a ­restrictive practice? Football is no ­different to any business that wants to grow.

“And what does a business that wants to grow do? It speculates and gambles on expanding and the only way to do that is to ­borrow money. These rules will put paid to that. Clubs will no longer be afforded the opportunity to chase the dream because it will be out of reach. It will kill football. It will virtually be impossible to develop and survive.”

Maybe if so many clubs weren't "chasing the dream", then overspending wouldn't be necessary?

[Uke]

Big Sam sharing his obvious financial acumen - in short, "not being able to spend more than you earn will kill clubs"

http://www.mirrorfootball.co.uk/news/We ... 50692.html

Allardyce said: “I accept there is a need to ­address ­issues ­related to ­finances, but these financial fair play rules will destroy the dream for many clubs. You are ­effectively ­taking away the golden egg if clubs are prevented from spending more than they earn. The gulf ­between the ­Premier League and ­Football League will just widen and be almost ­impossible to bridge.”

As Bolton manager, Sam experienced the joy of ­gaining promotion to the top flight and he acknowledges the balancing act that club owners face.

“I accept owners have an obligation to ensure clubs are run on a ­financially sound footing and they don’t over-extend to the point where they can’t service debt,” he said. “But in order to compete you have to spend. As it is, the clubs ­coming down from the ­Premier League have a ­distinct ­advantage over their rivals with four years of ­parachute payments.

“That will become an even bigger advantage if these ­financial fair play rules are ­introduced next season. I think the idea that you will get penalised if you spend outside the ­structure that is put in place is ­madness. Surely it’s a ­restrictive practice? Football is no ­different to any business that wants to grow.

“And what does a business that wants to grow do? It speculates and gambles on expanding and the only way to do that is to ­borrow money. These rules will put paid to that. Clubs will no longer be afforded the opportunity to chase the dream because it will be out of reach. It will kill football. It will virtually be impossible to develop and survive.”

Maybe if so many clubs weren't "chasing the dream", then overspending wouldn't be necessary?

Dream chasing is for the fans and players

Management is what the club should be doing which includes selecting the right workforce to achieve your objectives within defined parameters

[Hoop Blah]

Although I agree with reigning in the ridiculous overspending he does have a point. Other businesses in other industries are allowed to borrow and speculative to accumulate and stimulate growth so I'm not sure football shouldn't be allowed to do the same. How to ensure that those borrowings aren't sustainable is the key (and difficult) question though.

[Rev Algenon Stickleback H]

Although I agree with reigning in the ridiculous overspending he does have a point. Other businesses in other industries are allowed to borrow and speculative to accumulate and stimulate growth so I'm not sure football shouldn't be allowed to do the same. How to ensure that those borrowings aren't sustainable is the key (and difficult) question though.

There's a rather big difference between knowing that if you expand you can sell more, and spending 30% over your total turnover ever year in the hope that it might pay off.

An investment is building a larger stand so you can get more fans in. What clubs do is called gambling, and is far more risky, particularly when other clubs are gambling too.

[Bandini]

Odious though he is, Fat Sam is right about the parachute payments.

Although I agree with reigning in the ridiculous overspending he does have a point. Other businesses in other industries are allowed to borrow and speculative to accumulate and stimulate growth so I'm not sure football shouldn't be allowed to do the same. How to ensure that those borrowings aren't sustainable is the key (and difficult) question though.

The trouble in relation to this is that we accept that businesses go bust, whereas that doesn't tend to be the case with football clubs.

[Big Foot]

http://www.evertonfc.com/evertoninterac ... money-goes

Interesting read

[leicsRoyal]

Ketterings game was called off today as due to the severe financial problems the club have, they have been forced to let go many of the back room staff.
This resulted in no one putting the covers on the pitch last night as they have no groundsmen!

[rhroyal]

http://www.evertonfc.com/evertoninteractive/where-the-money-goes

Interesting read

And what's even more interesting is how this exact same thing applies to us.
Hundreds, if not thousands, of complete idiots shouting "where's the money gone", because they don't understand the concept of paying for wages and tangible/intangible items you consume.

If only the morons would understand how things work, then we'd not have this constant barrage of "where's the money gone".

It could help for the club to follow suit. You currently need to be registered with Companies House to access our statements, and you need a decent understanding of finance and jargon to make sense of them.

If we put a transparent piece like that on our site, explained in easy to understand language, that would help. Some numpties would still refuse to believe what was written, but what can you do about that?

[Stranded]

The club did quite some time ago, people still didn't believe it.

[Royal Rother]

And many of us have taken time to explain certain key aspects of what appears in the accounts in very plain jargon-free English but the main response is not "ah thanks, I understand it now" but tends to be "everyone knows clever accountants can do what they like with the numbers so don't believe what's in the accounts".

Where is the No 1 numpty, Royal Blue, anyway?

[Barry the bird boggler]

But there's always a conspiracy behind everything to some people, even if you could get 100% proof on things there are still those idiots who won't believe it.

Everton look to be a good well run club living within their means in the Premiership, occasionally flirting with relegation and occasionally flirting with Europe but in the main a sold club not really going to do anything aside froma good cup run now and then.

Now the interesting thing is what will happen to the game when the football creditor's rule is blown away (either voluntarily or by legislation) and finanical constraints are enforced - presumably the well run clubs could find themselves being more competitive with the so call big time charlies who don't give a Castlemaine XXXX for anything other than spend spend spend.

[Rev Algenon Stickleback H]

Nice little report on the latest guy trying to buy Portsmouth
http://www.fansonline.net/pompey-fans/a ... php?id=395

Essentially the guy sounds like a total fraud, claiming to run dozens of companies which don't actually appear to exist.

No doubt he'd still pass the FA's fit and proper test.

[Barry the bird boggler]

Latest on Darlington from the Stockton and Darlington Times....

INTERESTED parties battling to save Darlington Football Club met at a secret location this morning to try to thrash out an eleventh-hour deal.

Three separate elements came together to discuss a plan which involves an eco-friendly residential development on the Neasham Road site and the stadium.

Discussions are now continuing with council officials to assess the validity of the scheme and, meanwhile, attempts are being made to raise enough funds to continue the administration.

The meeting was attended by members of the Darlington Football Club Rescue Group, led by businessman Mark Meynell, who have worked tirelessly in recent weeks to find a solution.

Other local businessmen, who have been working on the housing development idea, were also at the meeting, along with two out-of-town businessmen who are interested in investing in the scheme, and the town's MP Jenny Chapman.

Their identities of the potential investors are not being revealed at this stage.

Peter Barron, editor of The Northern Echo, was also at the meeting. He said: "It is clear that extraordinary efforts are being made to save the club. There are major hurdles to overcome and the club's future still hangs in the balance but the work being done behind the scenes should be applauded."

The hope is that the club can at least continue until the end of the month, which takes in two potentially money-spinning homes games against Fleetwood and York.

Time is criticial because Yarm-based administrator Harvey Madden is understood to become legally liable for the running of the club from midnight tonight, including the cost of players' wages.

[Barry the bird boggler]

Truro also sorted out....

Fears that Truro City could face liquadation today (Monday) have been lifted after chairman Kevin Heaney revealed the club has settled its outstanding bill with HM Revenue and Customs.

Upon leaving the High Court in London, Heaney, said: "I can confirm that the outstanding six-figure sum has been paid in full to HM Revenue and Customs. So from now on it is business as usual, with team strengthening and our continued commitment to the Stadium for Cornwall project. We will now be seeking to have the League's transfer embargo lifted just as soon as possible so that we can start strengthening our squad again.

"We are immensely grateful to everyone who has stuck by the club and helped in all sorts of ways over the last few extremely difficult months. I will be at Bromley for our next match, this Saturday, and I very much look forward to seeing as many as possible of our fantastic away supporters there - followed, of course, by our next home match a week later against Staines Town. Now it's time for a fresh start - onwards and upwards, as they say

[Deadlock]

The hope is that the club can at least continue until the end of the month, which takes in two potentially money-spinning homes games against Fleetwood and York.

You know your club is in trouble when a home game against Fleetwood is described as "money-spinning".

[Ferris]

Darlo have sacked their manager and their first team squad

[TFF]

Darlo have sacked their manager and their first team squad

tbf, if they'd got them into the premier league they wouldn't be in this mess

[Friday's Legacy]

Lee Evans
Northwich Victoria needs saving, evicted from our ground and staring down the barrel. Can you RT this please #SaveNVFC

http://www.northwichvics.co.uk/

Club Statement

NORTHWICH Victoria Football Club has today been dealt a further blow following the departure yesterday of management team Andy Preece, Andy Morrison and Darren Ryan.
The club has been issued with a notice to vacate the Victoria Stadium after learning from joint charge receivers at business advisory firm Deloitte Touche that a third party bid for the land has been accepted.
It is not known at this stage who the buyers are.
The club has asked Deloitte for further information, but has not yet received a reply.
In the meantime, owner Jim Rushe is seeking legal advice on the club’s current position.
Arrangements for forthcoming home matches, including next Tuesday’s scheduled Mid Cheshire FA Senior Cup semi final against Winsford United, will be announced shortly.

Protest Planned Against Stadium Purchase

It has been confirmed today that Thor Specialities Ltd have come to an agreement with administrators Deloitte Touche to purchase the Victoria Stadium.

In response to the news, a protest against the purchase is being organised at 10am on Thursday morning at the Victoria Stadium.

Fans are requested to show their support in what will be a peaceful protest.

Local press and Skysports News are expected to report from the Victoria Stadium.

[Barry the bird boggler]

They should never have left the Drill Field! Anyway what's the background story about what's been happening at Northwich?