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greed league in danger
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I have every faith that the Levys are watching 'Arry very closely. They're no mugs - I don't see Joe Lewis pouring money into a pit and walking off.
If he wanted to buy success he'd have tried by now. That he hasn't suggests he wants to keep the books balanced and that suits me just fine - I'd rather go out of the FA Cup and have a club for the Generalissimos left to support than win it this year and then go through what Pompey are enduring.
This is exactly the point.
It is the fans I feel for. They've invested years of their lives following & supporting their team, & investing a lot of time & money.
The fact that it is so easy to mis-manage a club a blight a town/city by ruining such an entity, on an all to easy option by buying these clubs is actually a massive concern for me - most likely because I remember what nearly happened to my club. I remember vivdly how we fell 4 divisions in 4 years, how half the ground was closed due to safety following no investment. I remember my villa supporting dad coming home saturdays telling me the flags were at half mast today, followed by smugly asking if the wolves had scored a goal.
I remember the impact it had on the whole town.
We got lucky. Some very dedicated people ensured the phoenix could arise from the flames. Out of darkness, cometh light. & surely it did.
For the clubs sake Gen, I hope the Levy's are watching closely & taking a particular interest in all transfers & wage negotiations. IMO 'arry has a lot to answer for. He recently tried to argue it was nothing to do with him, after all he mainly signed free transfers (which in itself is some joke, but also fails to account for the wage structures put into place which have crippled the club.)
The Levy's don't strike me as negligent though...& I am sure he is being sat on. The lack of his wheeler-dealing is significant.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Norfolk_Jim wrote: »Well one is Burnley, who is the other one?
I suspect you may be fishing...
Wolves are the other. Steve Morgan bought the club from Sir Jack Hayward, for £10 (not a bad investment). He then put £30million into the club for development purposes.
Since that time the club were promoted, so sky money etc has helped. Although outlay on transfers has been circa £18 million, we're still in the black.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Ah, A Wolves fan! We'll be seeing you at the Cottage before long then.0
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Norfolk_Jim wrote: »Ah, A Wolves fan! We'll be seeing you at the Cottage before long then.
Yes, could be a big game! More a musn't lose, than must win.
To be honest jim, I hope Burnley stay up in the long run (as long as it isn't at our expense!;))
We're at bolton saturday. I'm hoping we give them a severe doing!It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
I believe that Hull City were debt free when they were promoted. Looking at the balance sheet for July 2008 (the last one I can find) they took on £21,000,000 of debt in that year to try to stay up with a proposal to take on £7,000,000 to stay up this year.
Even Wolves are effectively doing the same thing as Chelski only on a smaller level - a rich benefactor is allowing them to live above their means. However, AIUI that is how most football clubs in the UK operate and have done for as long as I can remember; a local businessman buys or rescues the club with dreams of bringing the glory days back to Lincoln City (or wherever) and just about bankrupts himself in the process. The only thing that has changed is the scale of what is happening now at the top of the Premiership.
The thing is, there are cashflows to support substantial levels of debt in theory at least. Tickets for White Hart Lane are £75 a pop. The various TV and other media rights payments are worth an average of £45,000,000 a year per club and then there's shirt sales, cup runs and maybe Europe too.
The problem comes if you go back a step the financial penalties are extreme: if Man Utd, Liverpool or Ars**al don't get Champions League money for a couple of seasons I suspect they would be in a lot of financial trouble. I suspect the same could be said if Tottenham or Everton were relegated and didn't come straight back up.0 -
It appears there are prospects for BIG trouble ahead.
How can 1 league in europe have a combined debt higher than all the others added together?
http://news.bbc.co.uk/1/hi/business/8535297.stmIt's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
The problem comes if you go back a step the financial penalties are extreme: if Man Utd, Liverpool or Ars**al don't get Champions League money for a couple of seasons I suspect they would be in a lot of financial trouble. I suspect the same could be said if Tottenham or Everton were relegated and didn't come straight back up.
Not qualifying for the Champions League would make Man Utd insolvent if that happened. I read an article recently that suggested their interest payments are almost as much as wages, about £70 million/year. The Glazers also pay themselves 'consultancy' fees of about £5 million a year.
Leeds United is the classic of extreme overleveraging going wrong obviously, but I'm guess Man Utd would find someone to bail them out if it happened.0 -
I'm guess Man Utd would find someone to bail them out if it happened.
If you wanted to buy Man Utd, why take on all the debt and pay a premium for buying one of the top clubs in the country? Better to wait for them to get into trouble, be declared insolvent and buy them once some of the debt has been written off.
If you bought Man Utd for a quid plus the outstanding debt you'd be looking to pay about quadruple what was paid for Liverpool (£174,000,000). They're simply not worth it IMO.0 -
It is disgusting the way football clubs are able to take on huge debts and then walk away from them, with the only punishment being one relegation they would have had anyway. What about the local businesses ruined by their actions, or the uncollected taxes? Any football club going into administration should be forced to start again at the bottom of the football pyramid, and any club taking on huge debts should be automatically relegated. There is no reason any football club at any level should not be able to live within its means. Instead, the FA and Premier League connive and turn a blind eye to financial incompetence in the richest league in the world.Been away for a while.0
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Portsmouth have gone...
First premier league club to go.It's getting harder & harder to keep the government in the manner to which they have become accustomed.0
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