Football Finances |
View previous topic :: View next topic |
Author |
Message |
foxes1
Joined: 30 Nov 2008 Posts: 1224 Location: Leicester
|
Posted: Tue Jan 19, 2010 5:47 pm
Post subject: Football Finances |
|
|
So with Gold/Sullivan taking over at West Ham, they have announced that they have debts of 110 million pounds if you believe reports, can someone explain how debts at football clubs is gauged.
Reason I ask is, it was stated on the radio last night (and this is not a dig at Man Utd) that they are the richest club in world football but have a debt of 510 million pounds, how can this be. I am assuming that the assets of Man utd are more than any other club, so this effectively cancels out the debt. |
|
Back to top |
|
|
ForestMick
Joined: 24 Nov 2008 Posts: 1645 Location: Nottingham
|
Posted: Tue Jan 19, 2010 6:28 pm
Post subject: |
|
|
I would guess that rich clubs are like rich people - the more money they have, the more things they want, so the more debt they get into. Banks tend to lend money to people that need it the least, so I guess football clubs are the same. _________________ PLEASE check out my Prostate Cancer UK charity auction page here: https://www.facebook.com/groups/1550474568596587/ |
|
Back to top |
|
|
Tynie Topics
Joined: 26 Nov 2009 Posts: 3509
|
|
Back to top |
|
|
crowdedhouse
Joined: 21 Nov 2008 Posts: 262 Location: Sunderland
|
Posted: Wed Jan 20, 2010 12:08 am
Post subject: Football Finances |
|
|
If you think Pompey are having a hard time at the moment, spare a thought for Chester City.
425 supporters turned up for their home league game against Salisbury City tonight in what could be their final game ever, a record low crowd for Chester, and a High Court winding-up hearing on Friday.
If Chester survive to the end of the season it will be a miracle !!! |
|
Back to top |
|
|
stodin
Joined: 14 Dec 2008 Posts: 293 Location: Nottingham
|
Posted: Wed Jan 20, 2010 9:38 am
Post subject: Re: Football Finances |
|
|
crowdedhouse wrote: |
If you think Pompey are having a hard time at the moment, spare a thought for Chester City.
425 supporters turned up for their home league game against Salisbury City tonight in what could be their final game ever, a record low crowd for Chester, and a High Court winding-up hearing on Friday.
If Chester survive to the end of the season it will be a miracle !!! |
http://www.footballprogrammecentre.co.uk/forum/viewtopic.php?t=2369
I have been banging on about non league clubs living outside of their means for ages on here. Yes, its bad for the fans but if you run a buisness by spending more than you earn something is bound to go wrong and the owners must face the consequences. Spend too much chasing sucess and you get what you deserve. Halifax, Newcastle Blue star, Kings Lynn, Scarborough etc etc etc have learned this lesson.
Like I said I do feel sorry for the fans but I also feel sorry for the creditors of these clubs who often get back only 10-15% of what they are owed resulting in financial problems for local business. Lets also not forget that they owe £1million in unpaid tax, that is money stolen directly from my pocket!!
The recent cold weather is also having an impact on the non league clubs due to a lack of income from postponed games. Chester wont be the last one to fold (if they do)
Last edited by stodin on Wed Jan 20, 2010 9:44 am; edited 1 time in total |
|
Back to top |
|
|
Geddon
Joined: 20 Nov 2008 Posts: 1044 Location: Bristol
|
Posted: Wed Jan 20, 2010 12:53 pm
Post subject: |
|
|
I think if a few Premier League clubs were to go into admin then it might wake a few of the rest of them up and we'll start to see a return to something approaching normality.
Otherwise I wouldn't be against a licensing system like they have in Germany, where clubs have to prove that their finances and stadium etc. are in good enough order for the league they want to play in. No licence = relegation. That may make it difficult for the top clubs to keep competing and winning the Champions League but it'll certainly make things fairer for those clubs who don't spend money they don't have in order to succeed. |
|
Back to top |
|
|
Senior82
Joined: 25 Nov 2008 Posts: 982 Location: Near Sheffield
|
Posted: Wed Jan 20, 2010 1:03 pm
Post subject: |
|
|
It's only a matter of time before Portsmouth go into admin. They are totally screwed. |
|
Back to top |
|
|
pompeypete Forum Moderator
Joined: 17 Sep 2009 Posts: 1095
|
Posted: Wed Jan 20, 2010 2:50 pm
Post subject: |
|
|
Senior82 wrote: |
It's only a matter of time before Portsmouth go into admin. They are totally screwed. |
Correct.........now Sol Campbell sueing pompey for £1.7 million.
Still I think there are a lot of premiership clubs looking over their shoulders.
Once Pompey go, it could start the domino effect.
What the effect of 'Administration' is I'm not sure, relegation with -9 points , what happens to the creditors ? perhaps the forum can let me know. _________________ RESPECT..................
Flickr pages in the process of closing......
Happy to forward any info on Pompey... |
|
Back to top |
|
|
stodin
Joined: 14 Dec 2008 Posts: 293 Location: Nottingham
|
Posted: Wed Jan 20, 2010 3:34 pm
Post subject: |
|
|
pompeypete wrote: |
Senior82 wrote: |
It's only a matter of time before Portsmouth go into admin. They are totally screwed. |
Correct.........now Sol Campbell sueing pompey for £1.7 million.
Still I think there are a lot of premiership clubs looking over their shoulders.
Once Pompey go, it could start the domino effect.
What the effect of 'Administration' is I'm not sure, relegation with -9 points , what happens to the creditors ? perhaps the forum can let me know. |
Clubs dont get automatically relegated for going into administration but they do get a 10 point deduction (9 points in the premier league). They have to enter into a company voluntary arrangement CVA to pay their creditors, 75% of their creditors have to agree to this CVA. Football creditors have priority over HMRC regarding getting their money back meaning local business and us as tax payers probably get 15p in the pound back whereas football creditors should get 100% of their debt paid off.
Its complicated |
|
Back to top |
|
|
stodin
Joined: 14 Dec 2008 Posts: 293 Location: Nottingham
|
Posted: Wed Jan 20, 2010 3:47 pm
Post subject: |
|
|
Just to put this into a Portsmouth context. If they do go into administration it could mean that Sol Campbell gets his £1.7million while HMRC only get £1.5million of the £10million that is owed.
Its a disgrace! |
|
Back to top |
|
|
foxes1
Joined: 30 Nov 2008 Posts: 1224 Location: Leicester
|
Posted: Wed Jan 20, 2010 4:25 pm
Post subject: |
|
|
Leicester went into admin in 2002, and got off lightly in paying their debts off (and as a taxpayer it is wrong), but its like STODIN stays football related debts are at the front of the queue.
http://news.bbc.co.uk/1/hi/uk/7741859.stm
Problem is all major creditors have to agree to re-structure the debts owed by clubs and if one creditor doesn't agree, then the only option is administration. |
|
Back to top |
|
|
pompeypete Forum Moderator
Joined: 17 Sep 2009 Posts: 1095
|
Posted: Wed Jan 20, 2010 4:41 pm
Post subject: |
|
|
stodin wrote: |
Just to put this into a Portsmouth context. If they do go into administration it could mean that Sol Campbell gets his £1.7million while HMRC only get £1.5million of the £10million that is owed.
Its a disgrace! |
Thanks for the info, I can only agree. Thats worst than us bailing out the banks, at least banks might pay us back............eventually after paying those bonuses. _________________ RESPECT..................
Flickr pages in the process of closing......
Happy to forward any info on Pompey... |
|
Back to top |
|
|
Senior82
Joined: 25 Nov 2008 Posts: 982 Location: Near Sheffield
|
Posted: Thu Jan 21, 2010 11:24 am
Post subject: |
|
|
I believe it is written into HMRC's constitution that they don't accept a lower %age through a CVA, if another creditor is getting a higher %age.
So as football debts have to be paid in full, then HMRC do not accept anything less than 100%. This then leads to teams not exiting administration properly, and they end up with the additional points hit (see Leeds, Rotherham, Luton and Bournemouth) |
|
Back to top |
|
|
stodin
Joined: 14 Dec 2008 Posts: 293 Location: Nottingham
|
Posted: Thu Jan 21, 2010 11:51 am
Post subject: |
|
|
Senior82 wrote: |
I believe it is written into HMRC's constitution that they don't accept a lower %age through a CVA, if another creditor is getting a higher %age.
So as football debts have to be paid in full, then HMRC do not accept anything less than 100%. This then leads to teams not exiting administration properly, and they end up with the additional points hit (see Leeds, Rotherham, Luton and Bournemouth) |
This is true, while HMRC lost their priority status they can still stop a club exiting administration properly, especially if they are the largest creditor as they can refuse to accept the CVA. |
|
Back to top |
|
|
|
|
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
|
|
|
|
|
|
sharrowblade, 1 hour, 37 minutes ago
RIKERBCFC, 8 hours, 41 minutes ago
Dorking, 8 hours, 53 minutes ago
grantham, 1 day, 3 hours ago
Enniskillendoc, 1 day, 5 hours ago
James, 1 day, 6 hours ago
Raxfactor, 1 day, 6 hours ago
Raxfactor, 1 day, 6 hours ago
ndg1860, 1 day, 6 hours ago
colchestersid, 1 day, 7 hours ago
Raxfactor, 1 day, 8 hours ago
Pete’s Picture Palace, 1 day, 22 hours ago
Martin1963, 2 days, 2 hours ago
ndg1860, 2 days, 4 hours ago
PhilWBA, 2 days, 4 hours ago
Flaming Pie, 2 days, 7 hours ago
slightfold, 2 days, 7 hours ago
CAFC 1947, 2 days, 13 hours ago
Flaming Pie, 2 days, 13 hours ago
CAFC 1947, 2 days, 13 hours ago
DerbyCounter, 2 days, 14 hours ago
Dorking, 4 days, 10 hours ago
Dorking, 4 days, 11 hours ago
colchestersid, 4 days, 14 hours ago
Raxfactor, 5 days, 9 hours ago
Cpfc jim, 5 days, 9 hours ago
Raxfactor, 5 days, 9 hours ago
Cpfc jim, 5 days, 9 hours ago
grantham, 1 week ago
Pablo2019, 1 week ago
Dorking, 1 week ago
grantham, 1 week ago
seandel1, 1 week ago
Thedoog10, 1 week ago
colchestersid, 1 week, 1 day ago
kenners46, 1 week, 1 day ago
Thedoog10, 1 week, 1 day ago
colchestersid, 1 week, 2 days ago
Spireitenag1955, 1 week, 2 days ago
siddy, 1 week, 2 days ago
DerbyCounter, 1 week, 2 days ago
grantham, 1 week, 3 days ago
pafcprogs, 1 week, 3 days ago
pafcprogs, 1 week, 3 days ago
Flaming Pie, 1 week, 3 days ago
Cpfc jim, 1 week, 3 days ago
FootballShirts24, 1 week, 4 days ago
gatfb, 1 week, 4 days ago
Cpfc jim, 1 week, 4 days ago
grantham, 1 week, 5 days ago |
|
11,648
Members
10,148
Members Wants
39
Members Mini-Stores
4,227
Members Items for Sale
|
|
|