Jump to content
Newcastle-Online

Football Finances

LoveItIfWeBeatU

by LoveItIfWeBeatU
in Football

 Share

Recommended Posts

leffe186

leffe186

Posted
Posted

I don't think the media have quite caught up with how serious the situation at Liverpool is. We've never had a major club go bust before, but there's always a first time. Just because it's Liverpool doesn't mean it can't happen.

 

You wonder about the attitude of the Americans. In their sports, franchises are moving between different cities all the time. In Europe, the football club is a very important part of a city's identity and culture. It's more than just a business.

 

Lerner does appear to grasp that, but that might be understandable given his history. The NFL side he owns, the Cleveland Browns, had their franchise moved to Baltimore in the mid-90s but after much legal fighting they were resurrected (after a 3-year hiatus). I think this is the only such example. Their first post-hiatus owner was Randy Lerner's dad.

Link to post
Share on other sites
Mick

Mick

Posted
Posted

http://news.bbc.co.uk/sport1/hi/football/teams/p/preston/8683899.stm

 

Preston given winding up petition 

 

Championship side Preston have been served with a winding up petition by Her Majesty's Revenue and Customs.

 

A statement from the Deepdale club said it had received the petition following the failure to pay certain liabilities.

 

The company's ordinary shares will be suspended from trading from 17 May pending financial clarification.

 

On Thursday, North End borrowed a further £550,000 from leisure tycoon Trevor Hemmings to "meet the cost of players' wages due this month".

 

The cash injection took Hemmings's investment in the Deepdale club to £13.82m including interest.

 

The Lancashire club, who were one of the 12 founding members of the Football League, are considering their available options and will make a further announcement soon.

 

They finished the season in 17th place under manager Darren Ferguson, the son of Manchester United boss Sir Alex.

 

 

Link to post
Share on other sites
Happy Face

Happy Face

Posted
Posted

There's an easier to read table here...

 

http://www.dailymail.co.uk/sport/football/article-1279762/Manchester-Uniteds-debt-spiralling-Red-Knights-wont-rescuing-club-Glazers.html

 

Over 50% of Premier league debt held by Chelsea and Man u

 

Hoy in Liverpool and Fulham and you've accounted for three quarters of all top flight debt.

 

We've got the fifth highest premier League debt.

Link to post
Share on other sites
leffe186

leffe186

Posted
Posted

I'm sure there are clubs across the continent who will be decimated by this, if it's applied fairly. There are several clubs who are bankrolled by a wealthy benefactor.

 

Will be interesting to see how collective bargaining over TV deals will change too as TV money will become massively more important overnight.

Link to post
Share on other sites
Village Idiot

Village Idiot

Posted
Posted

I'm sure there are clubs across the continent who will be decimated by this, if it's applied fairly. There are several clubs who are bankrolled by a wealthy benefactor.

 

Will be interesting to see how collective bargaining over TV deals will change too as TV money will become massively more important overnight.

 

Not sure this can be applied easily. For example both Barça and Madrid routinely post profits, which are just accounting craftmanship as the debt (sorry, investment) keeps growing for both. I'm sure there will be lots of ways to circumvent this rule.

Link to post
Share on other sites
leffe186

leffe186

Posted
Posted

I'm sure there are clubs across the continent who will be decimated by this, if it's applied fairly. There are several clubs who are bankrolled by a wealthy benefactor.

 

Will be interesting to see how collective bargaining over TV deals will change too as TV money will become massively more important overnight.

 

Not sure this can be applied easily. For example both Barça and Madrid routinely post profits, which are just accounting craftmanship as the debt (sorry, investment) keeps growing for both. I'm sure there will be lots of ways to circumvent this rule.

Yeah, I was thinking about Barca and Madrid but don't know their financial details. I worry (in my anglocentric way) if the regulations will be applied more stringently in England than elsewhere.

Link to post
Share on other sites
Martin Lol

Martin Lol

Posted
Posted

The confidentiality clause imposed on David Moores when he sold Liverpool to the Americans seems to have expired.  The details published in the Times and the spectre of administration haven't been well received on RAWK

 

http://www.redandwhitekop.com/forum/index.php?PHPSESSID=028d2a732c6c4c5ff1b841176a2d6d45&topic=258490.0

 

After years of Liverpool laughing at Everton's financial problems, wonder how the Everton fans feel now that the shoe seems firmly to be on the other foot?

Link to post
Share on other sites
Cronky

Cronky

Posted
Posted

The confidentiality clause imposed on David Moores when he sold Liverpool to the Americans seems to have expired.  The details published in the Times and the spectre of administration haven't been well received on RAWK

 

http://www.redandwhitekop.com/forum/index.php?PHPSESSID=028d2a732c6c4c5ff1b841176a2d6d45&topic=258490.0

 

After years of Liverpool laughing at Everton's financial problems, wonder how the Everton fans feel now that the shoe seems firmly to be on the other foot?

 

The lesson seems to be that deficit financing won't work if you're competing against clubs who are being subsidised from outside and who aren't going to have to balance the books at some stage. The new UEFA regulations can't come soon enough.

Link to post
Share on other sites
  • 2 weeks later...
Liam Liam Liam O

Liam Liam Liam O

Posted
Posted

Breaking news: HMRC to veto Portsmouth CVA

 

HMRC source says it doesn't regard 20p in the pound as "an acceptable return to the taxpayer"

 

 

Written by David Jetuah and Rachael Singh

 

Accountancy Age, 07 Jun 2010

The taxman is set to reject Portsmouth Football Club's plans to save itself from collapse, as it regards the troubled club's offer of 20p in the pound return to creditors as too low.

 

"[Portsmouth Football Club] have offered 20p in the pound to creditors, which we don't regard as an acceptable return to the taxpayer," an HMRC source told Accountancy Age.

 

Portsmouth is hoping to hammer out a Company Voluntary Arrangement (CVA), giving the South Coast outfit the ability to carry on as a football club - with a creditor meeting scheduled for next week.

 

The club needs 75%, or more, of creditors to vote in favour of the CVA for it to be approved.

 

Because of the amount of money owed to the taxman, the agency holds 25% of the vote.

 

"We are determined to achieve a decent return to the taxpayer," the source added.

HMRC had previously changed the first draft of a CVA as it wanted the proposal to include a liquidation in order to investigate antecedent activities.

 

Accountancy Age revealed earlier this month that HMRC filed a writ against the Premier League regarding its controversial "football creditors rule ".

 

The FCR essentially means all football creditors, including players and managers will be paid in administrations, with the money usually deducted from payments received through TV rights.

 

http://www.accountancyage.com/accountancyage/news/2264288/hmrc-set-veto-cva

Link to post
Share on other sites
Thespence

Thespence

Posted
Posted

Could you imagine where football would be without the FCR in place.

 

Depends whether you mean if they took it away now, or whether it never existed in the first place I suppose.

 

Either. It would be messy as hell man.

Link to post
Share on other sites
Liam Liam Liam O

Liam Liam Liam O

Posted
Posted

Could you imagine where football would be without the FCR in place.

 

Depends whether you mean if they took it away now, or whether it never existed in the first place I suppose.

 

Either. It would be messy as hell man.

 

Would be another massive mess for the banking industry.

 

These loans we have secured against our future transfer installments would suddenly be very risky for the banks.

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing
×
×
  • Create New...