The State of finance in football....

[Ellisthegreek]

Im seeing more and more threads about Clubs in finacial trouble so id thought i start one purely on this subject (appologies if its been done before)....

Let me start by saying how proud i am for being part owning our football club and interlinked with being so successfull both on and off the pitch a the last few years.. and a club with ambitions like ours can only be a good thing, both financially and from the supporters view.

Now on to the main point of this thread....

Scarborough, Maidstone, Aldershot, Accrington, Telford and soo many more clubs have taken the plunge into financial oblivion and meltdown... And currently clubs such as Notts county, Darlington, Chester, Crystal Palace (probably others ive missed), are on the brink.
There are alot of reasons as to why the above clubs are in a financial mess, but the main reason is a mismanagement of the clubs finance and overspending on budgets.

So the question is; What needs to be done to prevent other teams from going into administration?

- Wage caps for each league?
- Transfer fee caps - which would also cap the signing on fee and Agent fees etc...
- Clubs that dont even fill their grounds and then build new stadiums. - Darlingtons a perfect example.

Anything else?

Discuss.....

 

[Poultice]

So the question is; What needs to be done to prevent other teams from going into administration?...

Nothing, it is just the way of things, firms go bust because they spend more than they earn, the level of personal bankruptcy is at an all time high, the points deductions are a decent enough disincentive, business is business my boy.

 

[Grecian2K]

Nothing, it is just the way of things, firms go bust because they spend more than they earn, the level of personal bankruptcy is at an all time high, the points deductions are a decent enough disincentive, business is business my boy.

And ECFC have (somehow) managed to soar from the Conf to L1 WITHOUT (as we're frequently reminded) any 'established lines of credit'....on account of the CRIMINAL profligacy of others.

IMHO, the "wit" who originally coined the word 'bankers' had a good ear for a rhyme!

Further discuss??

 

[CREDYGRECIAN]

Wage cap , is the only way foward.

Never happen though.

 

[manc grecian]

Illegal as well.

Players need to be more realistic with their wages. Never gonna happen when you have old nags like Russel and Stewart earning a decent wage.

 

[CREDYGRECIAN]

Illegal as well.

Players need to be more realistic with their wages. Never gonna happen when you have old nags like Russel and Stewart earning a decent wage.

Fleetwood !

Kieron Dyer , 65,000 a week....laughing all the way to the injury table..

 

[BigBanker]

Nothing, it is just the way of things, firms go bust because they spend more than they earn, the level of personal bankruptcy is at an all time high, the points deductions are a decent enough disincentive, business is business my boy.

It's a hardline to take when we were so close to going out of business (twice), and somehow got away with it - failing to fulfill our debts in the process.

Football is business, but as fans I think its natural to want to safeguard clubs against disappearing. It is a shame wage caps are illegal. Would help finances and could well make things more competitive.

 

[Poultice]

It's a hardline to take when we were so close to going out of business (twice), and somehow got away with it - failing to fulfill our debts in the process.

It's a hard world BB and there should be a natural wage cap, what you can afford to pay, while there is easy money out there and people dumb enough to give huge amounts of credit then some will take advantage, whether intending to mug it or just desperate to make summat happen and hoping that things will be alright.

We paid our debts per the rules, CVAs, IVAs and all the rest of that old bollox are wrong, when my world went fubar back in the early 90s I lost everything I had in the world in a financial sense, that is exactly how it should be, shed a bit of a tear when the Official Receiver took my BMW away but then went and got on with it.

ECFC should have gone bust and started again from the bottom like AFC Womble and The Shots IMO, the world wasn't like that so you take what you get, we would still have gone fubar if the saint that is Tony C hadn't done his stuff, so take what you are given and run with it, but don't person when when your own stupidity comes back to bite you.

 

[BigBanker]

It's a hard world BB and there should be a natural wage cap, what you can afford to pay, while there is easy money out there and people dumb enough to give huge amounts of credit then some will take advantage, whether intending to mug it or just desperate to make summat happen and hoping that things will be alright.

We paid our debts per the rules, CVAs, IVAs and all the rest of that old bollox are wrong, when my world went fubar back in the early 90s I lost everything I had in the world in a financial sense, that is exactly how it should be, shed a bit of a tear when the Official Receiver took my BMW away but then went and got on with it.

ECFC should have gone bust and started again from the bottom like AFC Womble and The Shots IMO, the world wasn't like that so you take what you get, we would still have gone fubar if the saint that is Tony C hadn't done his stuff, so take what you are given and run with it, but don't person when when your own stupidity comes back to bite you.

Agree with that.

I just find it hard to decide my position on the whole thing.

In many ways I think clubs should be put to the sword the same way that any other business would be, and that this is the only way that will eventually stop clubs taking stupid risks.

However, it seems hypocritical to take that point of view when we, somehow, managed to rack up loads of debt and get away with it.

 

[finetime]

Although the theory of "paying only what you can afford" is sound, it leads to the situation you see now with massive stagnation in each league, particularly the premiership, where finishing position is governed by finance.

I don't really like american sports but at least with wage caps and the draft system they intoduce a semblance of "sport" where all teams have something to play for.

F*ck being a bolton, blackburn or wigan fan where you're spunking shedloads of cash with no more hope than staying up season after season. There is no real progress.

It's sh*te.