Generic clubs in financial crisis Thread

[Southbank Old Boy]

apparently pompey fans were singing "where's the money gone" at their last game, which rather goes to show that fan stupidity is pretty endemic.

Why???

Have you seen how much money player transfers have made them in the last couple of season? Thats a lot of money irrespective of the wage bill they had when Arry was in charge

it's only a lot if it's a profit, which I doubt it is.

Well they made 14m PROFIT on Johnson alone
They got 9m for Crouch, which is what they paid for him originally, but its still income that they wouldnt have accounted for before selling
I bet they made a profit of Kranjcar too
They made nealry 6m profit on Muntari
They made 15m profit on Diarra
They made 7.5m profit on Defoe

Thats the best part of 50m profit on a handful of players in two seasons

[Sun Tzu]

They've spent a lot of money on that lovely new ground though.

[Baines]

Well they made 14m PROFIT on Johnson alone
They got 9m for Crouch, which is what they paid for him originally, but its still income that they wouldnt have accounted for before selling
I bet they made a profit of Kranjcar too
They made nealry 6m profit on Muntari
They made 15m profit on Diarra
They made 7.5m profit on Defoe

Thats the best part of 50m profit on a handful of players in two seasons

Less the wages paid to those players, and any agents' fees deducted from that £50m.

[Ian Royal]

How does it stack up compared to the loses they made on other players they signed and have let go? Or players they still have?

[Southbank Old Boy]

Well they made 14m PROFIT on Johnson alone
They got 9m for Crouch, which is what they paid for him originally, but its still income that they wouldnt have accounted for before selling
I bet they made a profit of Kranjcar too
They made nealry 6m profit on Muntari
They made 15m profit on Diarra
They made 7.5m profit on Defoe

Thats the best part of 50m profit on a handful of players in two seasons

Less the wages paid to those players, and any agents' fees deducted from that £50m.

Not doubting the money they paid on wages was probably a hell of a lot, but they also had all that lovelly Premiership cash to play with, and I think the point is more how come we can be in this mess when we made so much money on transfers

The idea that the wages have to be deducted kind of misses the point that those wages should really have been part of the budget, they werent a surprise cost the club didnt know about

For the record, in 07/08 Pompey paid 55m in wages, a 20m jump from the season before, that will probably have dropped a bit when arry left though

[Southbank Old Boy]

How does it stack up compared to the loses they made on other players they signed and have let go? Or players they still have?

Dont think they really made many loses on transfers. They lost a few on smaller deals, the throw away players, and then lost a few others that might have made a bit of a loss on, players like Sean Davis, Traore (only cost 1m in the first place), Mendes went for 3m, they paid 4m for Belhadj, then they also sold players lke Taylor, O'Neil and Benjani for all or 3-5m as well

Looking at the list of other going out also throws up Distin (who I think they might have got a fee for), Crainie, LIttle and Campbell (who all came in on a free anyway)

Basically they made a lot of money on transfers over the last few seasons, but due to the mismanagement of the club it might not have been enough to cover all the other monies going out. I think thats probably the point the fans were making

[Southbank Old Boy]

They have been paying huge agents fees and extortionate wages.

Not sure about extortionate, but probably beyond their means as a club with a gound that can only hold 20k

[ayjaydee]

Exerpt from Times article - some pretty hefty wages being paid by Pompey

They were joined last January by Jermain Defoe (£7.5 million, but cup-tied and unable to play at Wembley) and Lassana Diarra (£5.5 million). Winning the Cup and gaining entry to Europe seemed to justify the outlay, but the hidden cost was the wage bill, which could not be supported even if Fratton Park was full every week. Sol Campbell earned £60,000 per week, while even squad players were making phenomenal sums. Lauren was lauded by Harry Redknapp as a bargain signing at £500,000, but on £40,000 per week for 20 league starts over 2½ seasons, he hardly represented good value. Djimi Traoré (11 league starts for Portsmouth in two years) cost £1.5 million and earned £23,000 a week, most of which the club were still paying during two spells away on loan.

And although the club were able to sell on some of the big earners, at a profit in the cases of Diarra, Muntari and Johnson, those who remain continue to earn ruinously high salaries. Utaka, for example, is widely reported to be on £80,000, and the total monthly wage bill is £1.8 million.
Utaka, Nugent and David James are among those whom the club would especially like to remove from the payroll, while it is fair to assume that other members of the Cup Final team who remain at the club, such as Kanu, Papa Bouba Diop and Hermann Hreidarsson, have not taken much of a pay cut since appearing at Wembley.

Sales are believed to be necessary to satisfy creditors including Revenue & Customs, rival clubs and Gaydamak, with debts estimated at £60 million.

[rhroyal]

At Pompey John Utaka is allegedly on 80k a week. Combined with the likes of David James and Sol Campbell, Defoe, Crouch, Krancjar and Johnson being there is recent years, that says all you need to know. I can't imagine they can generate too much revenue from that stadium.

[Baines]

[

The idea that the wages have to be deducted kind of misses the point that those wages should really have been part of the budget, they werent a surprise cost the club didnt know about

The wages are directly to the point of whether or not they made a real profit. The profit on those player transfers was only made by virtue of Portsmouth's willingness to spend large amounts of money on wages.

[The whole year inn]

It looks like shifty dealings from the Cardiff board, getting 10,000 mug STH to pay their tax bill when they thought they were funding a transfer kitty to get them to the Prem.

http://www.cardiffcity-mad.co.uk/news/t ... ndex.shtml

Hardly surprising with Peter Ridsdale involved..borrowing millions based on Leeds qualifying for the Cl which they obviously failed to do

[Stranded]

Notts County hit with their second winding up order by HMRC. They managed to find the money last time...

[Nick Shorey my Lord!]

Another decent view on the Pompey situation in the Times (from yesterday):

http://www.timesonline.co.uk/tol/sport/ ... 974596.ece

"...irresponsible overspending isn’t just bad for your club, it’s a form of cheating."

[TFF]

http://news.bbc.co.uk/sport1/hi/footbal ... 439545.stm

Portsmouth have again failed to meet a promise to pay players their December wages, reports BBC Radio Solent.

Having promised to clear the debt on Tuesday, Pompey officials then moved the deadline back to Wednesday, but a further delay has arisen.

Portsmouth executive director Mark Jacob told BBC Radio 5 live the wage bill, which is thought to amount to about £3m, will be cleared on Thursday.

Pompey chief executive Peter Storrie hinted players may have to be sold.

"If the way to keep this club alive is to sell a couple of players again, we will have to do that - but it will be an owner's decision," said Storrie.

"If you do not sell, then you could well be going into administration."

Storrie also revealed that Portsmouth owner Ali al-Faraj had been unable to address Pompey's cashflow problems by organising new bank finance and bring on board new investment since his arrival in October.

"The new owners have come in almost overnight and to be fair they have put a lot of money in the club," added Storrie.

"They thought they were in a strong position to replace bank finance and bring in a major new investor that was going to come in and be involved.

"But those two things have not happened and although they are working on doing that, time is catching up with them in terms of the debts and the money that is needed to run a Premier League football side."

Fcuked. Deeply fcuked.

[Barry the bird boggler]

Wind them up, now.

[Jerry St Clair]

The PL need to stop trying to keep Pompey alive. It's just dragging it out and making everything worse. Sometimes you've just got to turn off the life support when the patient is brain dead.

Unless they're just trying to keep them afloat until they're the FL's problem again to maintain the "PL is wonderful" bullshite.

Yep - spot on. Never forget that much of the PL is all about marketing. They're desperately trying to protect their "brand", which is vital to their whole business plan.

As each day passes it gets worse. There can be little hope of keeping Pompey out of Administration until the end of the season (and thus saving PL face) shirley?

[Smoking Kills Dancing Doe]

Good old 'arry.....

Pompey have not recieved anywhere near the money quoted. Liverpool have paid £5m for Johnson, Pompey still owe Liverpool from previous deals. Defoe was pretty much a free back to Spurs due to money owed from his previous deal.

So many players on 80k plus.

They wont get out of this.

Palace is the other one to watch, they are in big trouble if their home game on Sat gets called off.....

[Deadlock]

After a certain period of not paying the players they become free agents. I can't remember how long that is; I think two months - Dirk? I know the PFA have stepped in to pay wages on occasion, but I think that was at smaller clubs that don't have £3m/month wage bills.

[Southbank Old Boy]

Pretty sure its 3 months, and think they have to be 3 months on the bounce

[TBM]

Henley Town are in trouble.....they're in so much debt and with no home games being played they're not getting any money in, plus they had to cancel all the xmas parties that were due to be hosted there meaning more money lost.

Don't reckon they'll be around next season, if they are then they certainly wont be in the Hellenic.

http://www.henleytownfc.com/News_View.a ... icleid=292