Southampton

[BrettNUFC]

for any team to do it would take a quality manager and a decent period of time imho

 

martinez & pochetino both look decent candidates for the ones who might break the strangelhold if given enough time and backing...to be honest they look the only ones

 

Why him?

[Guest Haris Vuckic]

for any team to do it would take a quality manager and a decent period of time imho

 

martinez & pochetino both look decent candidates for the ones who might break the strangelhold if given enough time and backing...to be honest they look the only ones

 

Why him?

 

Possibly his unique brand of catenaccio  and his financial muscle?

[Benwell Lad]

I seem to remember reading an article some months ago naming PL clubs who were mortgaging future income and stadium freeholds etc against loans to buy players and the perilous risks of doing so. I think Southampton were on the list, which if true would be the polar opposite of the Ashley model.

Does anyone know if this is correct or is their owner funding their transfers and wages ?

Bearing in mind what has happened to their nearest and dearest neighbours in the last few years you'd think the Saints would be a bit cautious.

[bealios]

Pretty much all borrowing is "mortgaging future income". You're basically taking a lump sum up front and in return you meet the interest payment from your future income.

 

A football club has the ability to offer future income as security (on top of the stadium in the traditional way as you say), but that's just security for the loan - the bottom line is are you borrowing so much that you can't comfortably afford the interest on top of all other expenses such as wages.

 

I don't know if Southampton's rise has been based on debt - I expect it is easy enough to find out. You're right though, if they have over-borrowed after seeing what has happened down the road then that is just daft.

 

But borrowing in itself isn't a bad thing. Typically if a business isn't borrowing it doesn't mean that it is being run in the best way possible, quite the opposite, it means that  it is losing opportunities that the extra capital might bring.

[Guest Roger Kint]

Southampton dont need Pompey to help them remember what can go wrong at a club mind. 

[Benwell Lad]

Pretty much all borrowing is "mortgaging future income". You're basically taking a lump sum up front and in return you meet the interest payment from your future income.

 

A football club has the ability to offer future income as security (on top of the stadium in the traditional way as you say), but that's just security for the loan - the bottom line is are you borrowing so much that you can't comfortably afford the interest on top of all other expenses such as wages.

 

I don't know if Southampton's rise has been based on debt - I expect it is easy enough to find out. You're right though, if they have over-borrowed after seeing what has happened down the road then that is just daft.

 

But borrowing in itself isn't a bad thing. Typically if a business isn't borrowing it doesn't mean that it is being run in the best way possible, quite the opposite, it means that  it is losing opportunities that the extra capital might bring.

 

Thanks.

Sure, I understand the difference between leverage and UK government type borrowing.  However as we all know when it comes to football normal business sense often flies right out the window 

Wish I could remember the article I mentioned as I'm pretty sure it held them up as one of the bad examples.

[Guest Roger Kint]

Sure the Swiss Ramble would have been it, they tend to break down cashflow/debts etc

[Benwell Lad]

Southampton dont need Pompey to help them remember what can go wrong at a club mind. 

 

Nah, you're right, but if anyone has forgotten then Pompey have shown them how bad it really can get.

[Benwell Lad]

Sure the Swiss Ramble would have been it, they tend to break down cashflow/debts etc

 

Some of their data may have been used but it wasn't them.

Said article was much more cynical than anything SR would do and highlighted the dodginess of some of those granting the loans.

[Guest Roger Kint]

Southampton dont need Pompey to help them remember what can go wrong at a club mind. 

 

Nah, you're right, but if anyone has forgotten then Pompey have shown them how bad it really can get.

 

The current owners of Southampton had already managed £40m debt before they got promoted to the PL. They were already taking huge chances if they couldnt get up in 2012.

[Tooj]

for any team to do it would take a quality manager and a decent period of time imho

 

martinez & pochetino both look decent candidates for the ones who might break the strangelhold if given enough time and backing...to be honest they look the only ones

 

Why him?

 

He's a disciple of Bielsa. Nothing else to say.