Generic clubs in financial crisis Thread

[Svlad Cjelli]

It may just be a question of when you get they get the money in the financial year - there are effectively three payments (prize money & TV money for the last season in the PL, followed by two parachute payments). I'm not sure they are all received a year apart, but I think there is a gap of some sort between the prize/TV payment and the first year's parachute payment. They may both be in the same financial year, or not - depending on when Boro's year end is.

[Not seen the item in question - so might be completely wrong on this}

[Wimb]

http://smogblog.co.uk/?p=2129

From a Boro blogger, I understood it the same way you did Dirkers I was just surprised by the mention in the article above.

[roadrunner]

PL & FA concerned by Birmingham's finances

Birmingham have reiterated a stringent denial that they are not in trouble amid uncertainty regarding their financial future.

The Premier League is said to be closely monitoring the Carling Cup winners after concerns about the club's parent company, Birmingham International Holdings (BIH), emerged on the Hong Kong Stock Exchange.

BIH is the investment vehicle used by Carson Yeung to buy Birmingham in 2009, but acting club chairman Peter Pannu has insisted that the situation at St Andrews is comparative to Midlands rivals Aston Villa and Wolves.

"Our finances are fine," Pannu told the Daily Telegraph. "We are reliant on Carson's money, not BIH. We do not borrow money from BIH.

"We borrow money directly from Carson. He is effectively like a bank to us. He has promised us that he will give us money for players and he will not ask for the money back.

"If I need money, I go to Carson. Carson has never said no to me any time I have asked him for money. He has paid £31m for players. When I need to top up, I will go to him.

"It is exactly the same situation at the other clubs in the Premier League. Aston Villa rely on Randy Lerner, Wolves rely on Steve Morgan. But I don't need money for anything other than players. We are in credit with our bank right now."

It has been suggested that Uefa could stop Birmingham from participating in next season's Europa League if their finances are not secure, and the Football Association is also reported to be paying attention.

[Ferris]

Birmingham have reiterated a stringent denial that they are not in trouble amid uncertainty regarding their financial future.

They've denied that they're not in trouble? So they are in trouble?

[roadrunner]

Birmingham have reiterated a stringent denial that they are not in trouble amid uncertainty regarding their financial future.

They've denied that they're not in trouble? So they are in trouble?

The FA and Premier League are concerned enough to now be monitoring the football club. I'm not sure what to think of it really. A lot of clubs, much like our own have been reliant on one financial benefactor. Villa and Wolves are said to be in a similar position to Birmingham, but the FA and PL don't seem as interested in them, so perhaps there's more to this than meets the eye.

[Svlad Cjelli]

It looks like the company that owns Brum - on behalf of Carson Yeung - is in trouble, which is the difference between them & Wolves/Villa.

[Barry the bird boggler]

It looks like the company that owns Brum - on behalf of Carson Yeung - is in trouble, which is the difference between them & Wolves/Villa.

So the company that owns Brum for Mr Yeung is in trouble yet Birmingham aren't? Still sounds odd to me. And tell me how do these funds that they need (and that seems a nice and cosy arrangement, wish I could ring someone up and say send me cash now) get to the club if not through the owning company? All seems questionable - isn't this a little bit similar to the Southampton debacle where they tried (and failed) to argue the holding company didn't actually own the club.

[Svlad Cjelli]

Certainly is - but Brum are arguing that Carson Yeung himself - rather than the holding company - is putting money into them.

[ZacNaloen]

That's surely irrelevent?


The rules state that the holding company goes into administration, you go into administration. Carson Yeung should be putting his money there for the club, not going direct to the club.

[Svlad Cjelli]

[Ferris]

2,3,1,4

[Terminal Boardom]

2,3,1,4

[PieEater]

"We borrow money directly from Carson. He is effectively like a bank to us.

Isn't this the approach that Pompey took with Gaydamak? One day it turned out the money was actually a loan that he wanted paid back.

[Svlad Cjelli]

Two interesting news items today :

- Stephen Vaughan, the guy who bankrupted Chester City and wants to takl over Wrexham, has been sent down for 15 months for assualting a police officer.

- Being reported that Ken Bates has failed to turn up for his appointed slot to give oral evidence at the DCMS enquiry this morning!

[Rev Algenon Stickleback H]

Fulham, that "well run club" that everyone seems to like, announced losses of £17 million today, taking their total debt to a trifling £224 million.

[facaldaqui]

Oxford
Leeds
Millwall
Cardiff

[Barry the bird boggler]

Isn't it all just one big depressing joke that no-one wants to do anything about......

[Svlad Cjelli]

Isn't it all just one big depressing joke that no-one wants to do anything about......

But people do - and the number who do is growing all the time.

5 or so years ago there were a few lone voices crying in the wilderness about financial problems - no there are lots of influential people, in and out of the game, including senior government figures who are committed to forcing change onto an "industry" that has refused to change itself.

As an example, I remember a conversation In 2004 or so when the Football League said that it was absolutely impossible to introduce any kind of fit and proper person's test because "the clubs would never accept it." Now they're just about to strengthen the test for the third time!

But change takes time in an "industry" with so many vested interests - but it is coming.

[Arch]

Fulham, that "well run club" that everyone seems to like, announced losses of £17 million today, taking their total debt to a trifling £224 million.

Somewhere in the ballpark of SJM's total net worth. Why doesn't the tightwad bastrud liquidate all his non-RFC assets and show some ambition by following Fulham's model.

[Ian Royal]

Fulham, that "well run club" that everyone seems to like, announced losses of £17 million today, taking their total debt to a trifling £224 million.

Somewhere in the ballpark of SJM's total net worth. Why doesn't the tightwad bastrud liquidate all his non-RFC assets and show some ambition by following Fulham's model.

That's horrific, it must be at least twice what they're worth, probably three times as much.