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Radio 5, debt within championship clubs


Playa Amodores

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It's quite interesting isn't it? And often a bit wider than just the Championship clubs.

The difference between the have and the have nots is stark. Huddersfield I think got £90 million last year for finishing bottom, so it's no wonder everyone is desperate to over reach themselves and get promotion.

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I just started a new thread with this and then noticed it already had a thread. Here is the post I put in my thread...

 

I think this is something we're all aware of - clubs overspending in an attempt to reach the PL riches, the parachute payments creating a huge inbalance and so on:

https://www.bbc.co.uk/sport/football/50674331

I know Vale are nowhere near the Championship right now but if clubs like us are to have any ambition it surely must be that we can progress upward through the leagues on merit and without the worry of bankrupting the club.

After all, Yeovil's brief stint in the Championship in 2013-14 has seen them crash out of the league and into the National League. Something surely has to be done to make it a more level playing field. 

Personally, the first thing I would ditch would be the parachute payments as they basically facilitate clubs to take a huge financial gamble when in the PL safe in the knowledge that should they get relegated the PL will bankroll them for a few years.

p.s. this is not a dig at Stoke. Much as we like to beat them and be higher than them in the league one day, I wouldn't want to see other clubs, even our fiercest rivals go under should the financial bubble burst. I just think this whole situation is unsustainable and if it isn't sorted a whole host of clubs will go bust.

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5 minutes ago, TheSage said:

It's quite interesting isn't it? And often a bit wider than just the Championship clubs.

The difference between the have and the have nots is stark. Huddersfield I think got £90 million last year for finishing bottom, so it's no wonder everyone is desperate to over reach themselves and get promotion.

It is a massive ga0, as Leeds who finished 3rd in the Championship, made £41m.

Good to see they’re including other clubs not just the Championship. If something isn’t done now Championship clubs to follow Bury. The EFL need to stand up and get control.

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I was reading this morning on Kieran Maguire’s Twitter account that parachute payments make up 50% of the combined turnover of all Championship clubs.

Also, the combined losses of all the Championship clubs total half a billion.

One of the consequences of the new PL TV deal is that the stakes have been raised for those clubs who are willing to gamble to get in there.

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1 hour ago, Santa said:

I was reading this morning on Kieran Maguire’s Twitter account that parachute payments make up 50% of the combined turnover of all Championship clubs.

Also, the combined losses of all the Championship clubs total half a billion.

One of the consequences of the new PL TV deal is that the stakes have been raised for those clubs who are willing to gamble to get in there.

Wasn't it one of the raisons d'etre for the PL though? I remember at the time the Prem was formed someone saying that the professional game was too wide and by concentrating club finances in the top division the rest of the professional leagues would wither on the vine - unless individual clubs could be bankrolled (like Bournemouth have more recently). The commentator expected that eventually 2nd tier would remain professional but 3rd and below would be semi pro or even amateur. It's taken a long time but it's starting to happen.

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3 hours ago, bycars rob said:

Most of the 5th tier are full time pro clubs, so I don`t see that it is happening yet.

The question is how much it's costing them to hold onto professional status. We've already had Bury go bump this season and Macc might be joining them.

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Bury just weren`t living within their means and it was obvious to me that it wasn`t going to end well, whereas Macc just don`t get big enough crowds to compete at this level. A club such as us shouldn`t have too much problem paying our way in this league.

The problems come come when clubs gamble to get promotion or there is the unfair competition such as in the championship where clubs come from the prem with massive parachute payments, some of whom waste them like Stoke but others spend well such as West Brom.

Stoke probably have 10 times the budget of say Barnsley, which is farcical.

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The Price of Football podcast is an interesting listen.

It's got Kieran Maguire from Liverpool Uni on it, who specialises in football finance. The numbers in the Championship are staggering. Debts, wages, stadium 'sponsorships' and sales, FFP, I could go on.

The EFL is self-regulated and needs serious reform or there will be many more Bury's.

As an example - apparently, Derby paid Tom Ince's mum 700k per year to be a 'scout'...

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On 13/12/2019 at 05:13, The_godfather said:

The Price of Football podcast is an interesting listen.

It's got Kieran Maguire from Liverpool Uni on it, who specialises in football finance. The numbers in the Championship are staggering. Debts, wages, stadium 'sponsorships' and sales, FFP, I could go on.

The EFL is self-regulated and needs serious reform or there will be many more Bury's.

As an example - apparently, Derby paid Tom Ince's mum 700k per year to be a 'scout'...

Agreed, it’s a fascinating and very educational listen!

As you say, the holes in FFP are staggering, and almost make the point of FFP obsulete. But as long as the finacial rules has to be voted through by the club owner, they will never change! The way some owners are accusing other owners of cheating financially, when they just use the loopholes they themselves have put in place, are a bit farcial.

But absolutely gobsmacking figures being lost, every single week in the Championship!

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On 17/12/2019 at 15:05, Danish Valiant said:

Agreed, it’s a fascinating and very educational listen!

As you say, the holes in FFP are staggering, and almost make the point of FFP obsulete. But as long as the finacial rules has to be voted through by the club owner, they will never change! The way some owners are accusing other owners of cheating financially, when they just use the loopholes they themselves have put in place, are a bit farcial.

But absolutely gobsmacking figures being lost, every single week in the Championship!

Sad to say but we need some high profile failures where creditors take serious losses to make people sit up and take action. It so clearly isn't sustainable. At the moment I wouldn't want Vale to get into The Championship because I fear it would destroy the club. If the entry price is 20 million in debt for every season I don't feel it's a price worth paying and says there is a sickness in the soul of English football.

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On 13/12/2019 at 04:13, The_godfather said:

The Price of Football podcast is an interesting listen.

It's got Kieran Maguire from Liverpool Uni on it, who specialises in football finance. The numbers in the Championship are staggering. Debts, wages, stadium 'sponsorships' and sales, FFP, I could go on.

The EFL is self-regulated and needs serious reform or there will be many more Bury's.

As an example - apparently, Derby paid Tom Ince's mum 700k per year to be a 'scout'...

From listening to Sjoke fans complain about Tom Ince(or the Show Pony  as he is known ) lets hope she didn't scout her own son or Derby were really robbed.

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