Generic clubs in financial crisis Thread

[Friday's Legacy]

WHUM and Cardiff at least have backers with some money.

It's not just about wealthy backers now though. Clubs have to get their wage bills/expenditure etc down considerably as part of the new FFAI rules from next season.

Soccer Saturday were discussing this earlier and said West Ham have a wage bill of around £38m. If they don't go up this season then they think their finances will cripple the club, having to bring their outgoings in line with the FFAI for next season. That's a lot of player sales to get the wage bill down, and then cheaper replacements to come in and still keep their spending down at the same time. Same for Leicester, Birmingham etc. Birmingham are very close to administration if the stories going around today are true.

[Stooper]

WHUM and Cardiff at least have backers with some money.

It's not just about wealthy backers now though. Clubs have to get their wage bills/expenditure etc down considerably as part of the new FFAI rules from next season.

Soccer Saturday were discussing this earlier and said West Ham have a wage bill of around £38m. If they don't go up this season then they think their finances will cripple the club, having to bring their outgoings in line with the FFAI for next season. That's a lot of player sales to get the wage bill down, and then cheaper replacements to come in and still keep their spending down at the same time. Same for Leicester, Birmingham etc. Birmingham are very close to administration if the stories going around today are true.

Thought it came into force from 13/14?

[Friday's Legacy]

WHUM and Cardiff at least have backers with some money.

It's not just about wealthy backers now though. Clubs have to get their wage bills/expenditure etc down considerably as part of the new FFAI rules from next season.

Soccer Saturday were discussing this earlier and said West Ham have a wage bill of around £38m. If they don't go up this season then they think their finances will cripple the club, having to bring their outgoings in line with the FFAI for next season. That's a lot of player sales to get the wage bill down, and then cheaper replacements to come in and still keep their spending down at the same time. Same for Leicester, Birmingham etc. Birmingham are very close to administration if the stories going around today are true.

Thought it came into force from 13/14?

From the BBC:

Championship clubs making losses of more than £6m will be fined millions of pounds or put under a transfer embargo from the 2014-15 season.
Three of the 24 clubs voted against new regulations to limit investment from owners and curb total spending.

The changes will also prevent owners from funding their clubs through loans.

Football League chairman Greg Clarke said: "They will begin to lay the foundations for a league of financially self-sustaining football clubs."
Owners will be allowed to invest £6m next season, £5m the year after, then £3m in the 2014-15 season.

From 2015-16, clubs will be allowed to make a £2m operating loss, as well accept a £3m investment from an owner - allowing for a £5m overall loss. Clubs promoted to the Premier League that fail to adhere to the amendments must pay a fair-play tax on their losses, ranging from one per cent on the first £100,000 to 100 per cent on anything over £10m.

[soggy biscuit]

WHUM and Cardiff at least have backers with some money.

It's not just about wealthy backers now though. Clubs have to get their wage bills/expenditure etc down considerably as part of the new FFAI rules from next season.

Soccer Saturday were discussing this earlier and said.....

Not sure Paul Merson is the best person to listen to when wanting to know about the finer points of football finance

[Friday's Legacy]

WHUM and Cardiff at least have backers with some money.

It's not just about wealthy backers now though. Clubs have to get their wage bills/expenditure etc down considerably as part of the new FFAI rules from next season.

Soccer Saturday were discussing this earlier and said.....

Not sure Paul Merson is the best person to listen to when wanting to know about the finer points of football finance

Or a man that's been declared bankrupt, however they do understand what the FFAI rules mean for us all better than most of us do.

[Royal Rother]

Birmingham are very close to administration if the stories going around today are true.

Those stories are hardly new though are they? It was said a year ago on here that if Brum did not get promotion this year they would be utterly fcuked.

(if the useless search facility worked on here I'd take the trouble to find it)

[Friday's Legacy]

Birmingham are very close to administration if the stories going around today are true.

Those stories are hardly new though are they? It was said a year ago on here that if Brum did not get promotion this year they would be utterly fcuked.

(if the useless search facility worked on here I'd take the trouble to find it)

Who said they were knew? I don't know the ins and outs but a recent assessment on their accounts showed a number of irregularities. That has alerted HMRC, as well as the FL. That and their owner facing time behind bars, his assets frozen, and there being no money to cover their huge outgoings, it's all starting to come to a head.

[bigmike]

[bigmike]

Better View

[Z175]

WHUM and Cardiff at least have backers with some money. Brum might be fooked however.

Other point is that Gold and Sullivan only bought 1/3 each - the Iceland government ended up with the other third I think. So while they may be worth several 100 million each, they haven't fully committed yet. They have an option to buy the rest but have not taken it yet. For all there talk of being fans what they want is to own 100% of premierleague club with a tax payer funded olympic stadium. This could make them both a(nother) fortune. Yet with each years £40m wagebill and transfer committment thats a hefty slice of their cash. I just dont think they are the type to sink in every penny. I would expect much less extravagance next season. (Unless they go up, which I doubt!)

[soggy biscuit]

Better View

Whoever made that seriously needs a girlfriend

[PieEater]

Good to see Peter Griffin on the second horse

[Super_horns]

Hull in trouble..just getting rid of Nick Barmby after he made comments about a lack of money for transfers?

[PieEater]

I don't think Hull will be in trouble financially, Allam is bankrolling them and has already written off a load of their debts.

I don't think Barmby leaving will go down will with the Hull fans though.

[Stooper]

I don't think Hull will be in trouble financially, Allam is bankrolling them and has already written off a load of their debts.

I don't think Barmby leaving will go down will with the Hull fans though.

Rumours from Humberside that he's looking for a quick fire sale.

[Barry the bird boggler]

I don't think Hull will be in trouble financially, Allam is bankrolling them and has already written off a load of their debts.

I don't think Barmby leaving will go down will with the Hull fans though.

Rumours from Humberside that he's looking for a quick fire sale.

Koren anyone?

[Royal Rother]

Does anyone know how M'Boro are doing now?

2-3 years ago Barclays took out an £80m charge over the assets of the club and Gibson's companies. Considering he was reportedly worth only £35m at the time it would be amazing if, assuming they don't win the play-offs, and bearing in mind their parachute payments have long since expired, they can survive without going into administration.

[TFF]

Does anyone know how M'Boro are doing now?

...assuming they don't win the play-offs

[Royal Rother]

Oh bollox!

[cmonurz]

http://www.guardian.co.uk/football/2012 ... l-accounts

Not a ‘club in financial crisis’ but any means, but Liverpool have revealed a £50m loss in the year, including £8.4m in contract termination payments – just got me thinking how much money is wasted by the modern day short-termism of our top level football. Chelsea of course spent a small fortune getting rid of AVB, and I’m sure other clubs are doing similar. I wonder what impact these payments have had on RFCs bottom line?