Generic clubs in financial crisis Thread

[Bucks Dave]

SJM is a Tory who had little interest in the game but a very genuine interest in the town of Reading that he felt was instrumental in getting him to where he is today. I do believe that his wish to give the community something back is genuine, unlike Ashcroft who looked at Watford as a way to make money and nothing else. I don't think Ashcroft turned up to a single match and even sent assistants to vital shareholder meetings not bothering to turn up himself.

[Barry the bird boggler]

The first signs of a sea change as a result of the DCMS Sselect Committee. I know I've been banging on for months about what a difference this will make, but the fact that parliamentary time has been set aside for this legislation is such a massive development :

Clubs face licensing system in wake of parliamentary inquiry

• Select committee seeks to increase transparency of ownership
• Parliamentary time set aside for act to enshrine new system

Matt Scott The Guardian, Tuesday 29 March 2011

The Culture, Media and Sport select committee's investigation into football governance is set to lead to a formal club licensing system. Indeed, so advanced is the thinking of the committee that what the licensing system would contain is already taking shape.

Insiders have told Digger that there are four main strands. The committee has been particularly alarmed by the lack of transparency surrounding Leeds United's ownership. Shaun Harvey, the Championship club's chief executive, was left to answer the committee's questions about who are the beneficial owners of the web of offshore trusts that are Leeds's parents, but he said he did not know. This starkly illustrated to the committee the ease with which impenetrable structures can be set up.

The second licensing condition will be a strengthened fit-and-proper-persons' test. Third will be a restriction on the clubs' gearing ratios of debt to equity or assets, and fourth will be an element of supporter involvement in the decision-making structures of clubs.

This is set to be enshrined in a Football Governance and Major Events Act, for which parliamentary time has been set aside. The licensing system would be a big incentive for reform of the normally reactionary Football Association. Once the FA became fit for regulatory purpose, oversight of the system would give it proper teeth.

So will anything change or is this just more dust in the wind?

[Svlad Cjelli]

If this happens it's a major, major change.

Assuming it's based on the German licensing system, clubs would need to submit accounts, business plans and full details of ownership, management of debt before teh start of each season which would be scrutinised before they were granted a licence to compete in the competition (i.e. in their league). If they don't meet the criteria to compete in that league they are relegated to a lower league.

Also the bona fides of potential new owners would be checked also as a new licence would be required upon a change of ownership.

[Royal Rother]

We'll be in a league of our own.

[Svlad Cjelli]

The evidence submitted by Steve Coppell (and also Ian Watmore & Martin O'Neil) to the DCMS enquiry has been published :

http://www.publications.parliament.uk/p ... c79201.htm

[Royal Marine]

If this happens it's a major, major change.

Assuming it's based on the German licensing system, clubs would need to submit accounts, business plans and full details of ownership, management of debt before teh start of each season which would be scrutinised before they were granted a licence to compete in the competition (i.e. in their league). If they don't meet the criteria to compete in that league they are relegated to a lower league.

Also the bona fides of potential new owners would be checked also as a new licence would be required upon a change of ownership.

The sooner the better as well. It'll be very interesting what effect it has on many teams both in the division above us (most interestingly) and those below us.

[Svlad Cjelli]

The PL will fight tooth and nail - using all thir tame press contacts - to stop this.

[roadrunner]

Can the FL agree it with the PL's support? I would hope so, but teams relegated to the FL would then be in trouble if they weren't already financially sound.

[Ian Royal]

Can the FL agree it with the PL's support? I would hope so, but teams relegated to the FL would then be in trouble if they weren't already financially sound.

If it's passed as legislation the FL, FA and PL won't have any choice but to follow it. It'll be UK Law. Of course, that requires Parliament to actually do it.

[Svlad Cjelli]

The FL would love to do something like this now - but they can't afford it. Not the setting up of iut which is realativelt straightforward one the clubs agree, but the policing of it which is expensive.

[roadrunner]

Watford have just posted a £2.5M loss for the last half year (on top of a £4M loss last year). They need £3.5M injected just to keep going. Ashcroft has run out of patience and now accepts that his investment was a very poor one and so is selling to get something back. Graham Taylor, their chairman, is not recommending the buyout for £440,000 but admits that there is no other alternative and if shareholders don't accept a paltry penny a share then their shares may become unsaleable anyway.

Bassini, their main proposed buyer (the other turned out to be led by a conman), has been involved in a number of businesses and the Guardian cannot find one that was successful. He went bankrupt in 2007, went on benefits and changed his name (from Bazini).One of the planned directors is an ex hairdresser who isn't sure what her job will be as director but loves American football. You really couldn't make it up.

Still want to see Madjeski move on?

Sounds like Watford could well be going into administration very soon.

Regarding Madejski, it really does make you appreciate how good he has been for us here and understand also why we haven't had a buyer come along yet. He'll be vetting everyone that shows a serious interest, and thank god he does.

Bassini agrees Watford takeover

A spokesman for investment bank Seymour Pierce has confirmed that businessman Laurence Bassini has agreed a deal to buy Watford.

Lord Ashcroft, former chairman Graham Simpson and his wife Yianna accepted Bassini's offer on Friday evening.

Seymour Pierce are acting on behalf of Mr Bassini and have told Sky Sports News that his offer, worth ₤440,000, has now become 'wholly unconditional'.

The offer to buy the club was not scheduled to close until 15th April but the deal agreed will put Bassini as a majority shareholder, along with knee surgeon Panos Thomas.

The agreement will see Bassini acquire at least 55.11% of the club through a newly formed company called Watford FC Limited.

Watford are pushing to gain promotion back to the Premier League and are currently four points from a play-off place in the Championship.

Malky Mackay's men continue their bid for a top-six finish with a trip to Coventry on Saturday.

This wont go down well.

[Uke]

No mention of Rangers

http://news.bbc.co.uk/sport1/hi/football/12932160.stm

Hope the taxmen don't bottle it yet again for a team in blue

[roadrunner]

No mention of Rangers

http://news.bbc.co.uk/sport1/hi/football/12932160.stm

Hope the taxmen don't bottle it yet again for a team in blue

But they will. Rangers are too well known and well supported to shut down.

[Super_horns]

Good luck to Watford.
I foresee a dark shadow in their future. Words like "administration" and "asset stripping"..

Good job we have a decent Youth system..

[Barry the bird boggler]

No mention of Rangers

http://news.bbc.co.uk/sport1/hi/football/12932160.stm

Hope the taxmen don't bottle it yet again for a team in blue

But they will. Rangers are too well known and well supported to shut down.

That'd be good for Scottish football, a 1 club league and cup system.....

[prostak]

Works for the Baltic nations, and other than nonsense about heritage I can't think of any good reason why Scotland should have a more powerful league.

[Svlad Cjelli]

Best line from today's session - with Scudamore & Dave Richards - was Richards denying he could be a bully because he does so much work for the NSPCC.

[Svlad Cjelli]

Southampton have just posted a £7.7m loss for the year to 30th June 2010. Their wage bill is a £10.9m - astounding for Tier 3.

[roadrunner]

Southampton have just posted a £7.7m loss for the year to 30th June 2010. Their wage bill is a £10.9m - astounding for Tier 3.

I think the FL programme last Saturday said they had spent a lot to get out of League 1 this season and two of their strikers cost more than a million. (Lambert and..?) Madness. Hope they fail. Those wages are ridiculous.

[Victor Meldrew]

Southampton have just posted a £7.7m loss for the year to 30th June 2010. Their wage bill is a £10.9m - astounding for Tier 3.

I think the FL programme last Saturday said they had spent a lot to get out of League 1 this season and two of their strikers cost more than a million. (Lambert and..?) Madness. Hope they fail. Those wages are ridiculous.

Lambert and Barnard.
Pardew followed his Reading pattern of buying the top goalscorers at the lower level Butler and Cureton) and if you can afford to buy the best strikers around you have a great chance of promotion.
If Saints were to sell Oxlade-Chamberlain then all of that loss would be made up immediately.
What is our wage bill this season on lower gates than Southampton?