[Archived] Credit Crunch To Hit Football?

[philipl]

The Guardian have taken it down.

The gist of the story was there had been an opinion poll very recently amongst PL club supporters asking whether they are considering not renewing season tickets next season. It named who did the poll but did not give any useful facts about sample size, timing and method of polling etc etc so it is basically a puff piece.

Anyway under a deeply misleading heading a seriously sloppily written first para, it revealed that the fans of Newcastle, West Ham and Rovers (in that order I think) are least likely to renew next season's season tickets at a rate of 37%. It then threw in a sentence saying 36% of Man U supporters will not renew either.

I suspect it got pulled because it was simply a badly written piece.

However, it is a Hammer blow (ho ho) to anyone who might be thinking of selling WHam and if stories of no more waiting lists at OT and St James are true, translates into a straight slice of a third at least off gate revenues for NUFC and MUFC.

And at MUFC it means gotta sell the Ferarri smasher just to pay the interest for a year- oh eck!

[blue phil]

The Guardian have taken it down.

I suspect it got pulled because it was simply a badly written piece.

If that were the case The Guardian would be producing a blank sheet most days .....

[philipl]

Now this is seriously worrying

The Independent are reporting that the "clubs' body" set up to replace the G14 are in talks with UEFA to set a new rule limiting wages AND transfers to 51% of turnover in each and every season.

This would have three results:

- it would legislate to make the dominance of the current major clubs permanent.

- it would completely scupper Man City (or Chelsea when Abramovich arrived) and

- it would banish all small clubs from the Premier League including the Rovers irrespective of how well they are run.

[rebelmswar]

Now this is seriously worrying

The Independent are reporting that the "clubs' body" set up to replace the G14 are in talks with UEFA to set a new rule limiting wages AND transfers to 51% of turnover in each and every season.

This would have three results:

- it would legislate to make the dominance of the current major clubs permanent.

- it would completely scupper Man City (or Chelsea when Abramovich arrived) and

- it would banish all small clubs from the Premier League including the Rovers irrespective of how well they are run.

What would this mean to clubs like Man Utd and so forth that are already seriously in debt to their owners? Would those debts have to be paid off by a set time or would they just be Grandfathered in?

Why can they not just do a salary cap?

All of this meddling is a load of trip, if some foreigner with deep pockets want to throw his money around so be it. A natural plateau will arrive much like Chelsea, not to mention clubs that throw around money like the Mafia at a wedding always come to grief.

[joey_big_nose]

For God's sake, that would be depressing. It would mean that as Man Utd's turnover is 40 times whatever ROvers is they would be able to pay 40 times the wages. Ridiculous.

However I guess it might not change the dynamic too much as:

1) CL clubs need bigger squads so have more players who take up more wages.

2) The four CL clubs have the pick of the players so can take who they like off other clubs anyway, which is depressing. No change there really.

3) THe Premier leaugue income is so far ahead of Germany, SPain etc. it might actually strengthn the hand for Fulham, ourselves, Wigan, Boro to hoover up quality players from abroad.

All that said how on earth would Rovers get from 80% of turnover on wages to 51%?

[philipl]

As I read it, the proposed formula is that wages plus net transfer fees can only be 51% of turn over.

So for Rovers, wages would have to drop to £28m from £40m ish assuming the value of transfers in equalled the value out.

It would virtually force the Rovers to sell players each year to make a profit on transfers to make net transfers plus wages conform.

But no clubs are actually at the 51% mark at present so there would be no market for Rovers to sell players into!

What would be extremely dangerous for Rovers would be if the formula were accepted but the target be raised to say 65% in the first year.

The big 4 and some big city clubs would be OK but Rovers would still be forced to cut wages and sell players.

This despite the fact that the club will not be writing anything in its accounts like Newcastle for instance have to for reassurance that the company has a future nor have Rovers the embarassment of not issuing the accounts like Spurs or Pompey. I don't know how many clubs will end up showing a trading profit in 2007/8 but Rovers have.

[thenodrog]

As I read it, the proposed formula is that wages plus net transfer fees can only be 51% of turn over.

So for Rovers, wages would have to drop to £28m from £40m ish assuming the value of transfers in equalled the value out.

It would virtually force the Rovers to sell players each year to make a profit on transfers to make net transfers plus wages conform.

But no clubs are actually at the 51% mark at present so there would be no market for Rovers to sell players into!

What would be extremely dangerous for Rovers would be if the formula were accepted but the target be raised to say 65% in the first year.

The big 4 and some big city clubs would be OK but Rovers would still be forced to cut wages and sell players.

This despite the fact that the club will not be writing anything in its accounts like Newcastle for instance have to for reassurance that the company has a future nor have Rovers the embarassment of not issuing the accounts like Spurs or Pompey. I don't know how many clubs will end up showing a trading profit in 2007/8 but Rovers have.

Much better imo to limit squad numbers to a set number imo e.g. 25

[neekoy]

Much better imo to limit squad numbers to a set number imo e.g. 25

Got to agree, I think it should be 23 players, with four players under 21, with 7 players domestic players and a minimum of 3 domestic players and 2 under 21 players in every match day squad. Get rid of the non-EU rules.

[67splitscreen]

What credit crunch!, Obviously not in Kuwait. 500m

An offer that the owners can't refuse, I would have thought. Talk about a get out of jail card.

Liverpool

[philipl]

Not only do Liverpool have an apparent buyer but possibly Chelsea also.

[gumboots]

Not only do Liverpool have an apparent buyer but possibly Chelsea also.

Should someone point out to that guy that unless your 11 guys run round the pitch fairly successfully there is no money from tv rights etc?

[philipl]

Just because we haven't heard much about it recently, it doesn't mean the Liverpool farce is over.

The Independent- the clock is ticking as Gillett plots his retaliation!

[Billy Castell]

Part of me really hopes this doesn't come off. I want to see any of the big 4 knocked down a peg or 6. I think this'll be another last minute saviour, but whether it'll go like Chelsea when Roman took over, or Hearts' Romanov empire I do not know.

It would be very odd if RBS, and therefore the government ended up with the scousers. I guess we may see starting positions sub-contracted out to companies like Sodexo, points targets being set and Rafa Benitez being obliged to lose a laptop with a list of transfer targets and players' personal details on a train.

[thenodrog]

Just because we haven't heard much about it recently, it doesn't mean the Liverpool farce is over.

The Independent- the clock is ticking as Gillett plots his retaliation!

With this recession gathering momentume Lpool FC might be bloody cheap by Jun 30th!

Just as an aside I see hicks has appointed Rothschilds to find a new buyer. Doubtful probably but I wonder if there might be a spin off?

[philipl]

This is a devastating critique of how the Premier League has been operating.

[Exiled_Rover]

Much better imo to limit squad numbers to a set number imo e.g. 25

That's how it works in baseball (though it's more complex than that).

[philipl]

Very good article from Ireland on the current (last?) wave of Prem club buyers.

[jodrell]

I don't think its going well at Liverpool ( Sorry for the long links)

http://www.telegraph.co.uk/sport/football/...pool-sweat.html

http://www.newsoftheworld.co.uk/sport/1418...F-TAKEOVER.html

[Alan75]

Recent unemployment figures are bound to have an effect on Rovers

Unemployment rise

Todays sad news.

End For Walker Steel

[philipl]

Rovers and Burnley both unhappy with FA Cup £15 minimum price regulation

[RevidgeBlue]

Todays sad news.

End For Walker Steel

To the best of my knowledge, that is totally unconnected with Walker Steel although Corus's offices are on the old Walkersteel site at Guide.

The Walkersteel name was retained and a smaller operation is run under the auspices of Howard Walker around the Preston area. I think Howard currently resides in Monaco for tax purposes.

[Majiball]

Much better imo to limit squad numbers to a set number imo e.g. 25

Do any Sports just have a limit?

EG. every club can spend 25M on wages how they like?

Perhaps even a transfer fees cap before we have our first Billion pound footballer.

[Boz]

Questions asked in Nicko's thread about bank borrowings.

As at 30 June 2008 the bank overdraft stood at £9.5M.

A bank loan at £4.375M (£875K repayable within 1 year)

A loan due back to the trustees of £3M (£1M repayable within 1 year)

Give or take this was the club's debt, £16.9M

Since 30 June 2008 and pre 22.10.08 (date accounts signed) the club have had £7.3M in net transfer fees that are receivable, not sure when they are due to be received but would have thought a fairly large proportion. This would have been a combination of; MH compo, DB, Sir Bradley, Robbo, Grella, Andrews.

Since 22 Oct 2008 the club has parted with PI plus staff that no doubt had a cost. I can't think of any other major movements, i.e. transfers in/out, or new contracts awarded.

Overall very well placed if a credit crunch was indeed about to fall upon the premier league.

[LeChuck]

Some good news from Joe Kinnear regarding Newcastle's finances:

"Mike has lost £2bn quid in his own businesses and shares."

He then goes on to have a moan about Spurs and other understanding why other managers have 'bottled' the Newcastle job in the past.

[philipl]

Sharp downturn in transfer markets throughout Europe except at Spurs and City.