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 Championship clubs facing financial disaster
Topic Originator: GG Riva  
Date:   Thu 12 Dec 07:27

A scenario which could easily be repeated up here, albeit with smaller numbers.

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

Not something that there's any danger of happening at EEP, as long as we have the current BoD.



Not your average Sunday League player.
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 Re: Championship clubs facing financial disaster
Topic Originator: rossmcno1  
Date:   Thu 12 Dec 07:39

Bristol City lost £25,400,000 in one year.

BRISTOL CITY.

There will soon be a massive few years of reckoning for that league as the money runs out and the owners get bored. Happened up here mid naughties and only now are we seeing most clubs start to recover.

Madness.



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 Re: Championship clubs facing financial disaster
Topic Originator: OzPar  
Date:   Thu 12 Dec 08:08

I think there is a lot to be said for a draft pick system with a salary cap rather than the current transfer system. It works pretty well in a lot of other sports and tends to equalise things over a relatively short space of time.

I think it is only a matter of time before the football clubs are brought into line, purely and simply for the sake of survival.
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 Re: Championship clubs facing financial disaster
Topic Originator: wee eck  
Date:   Thu 12 Dec 08:26

There are some scary stats in that article. The significance of parachute payments now was illustrated by the statement that they now represent over 33% of total revenue in the Championship compared with just 9% when they were introduced in 2001/02. You have to wonder if they just tempt owners to gamble even more to gain promotion.
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 Re: Championship clubs facing financial disaster
Topic Originator: neils  
Date:   Thu 12 Dec 09:26

I take our BOD method any day of the week-have a budget, and we have to make do with it.

We were in that position before, and simply the players were not worth it, I think Ayr are also now trying to stick to a budget.

We see ICT posting an 800K loss- both Dundee clubs were bought by Americans to make money, they are spewing money instead- I am convinced they will sell the stadiums.

I don't think a salary cap does work in modern sport- what I think would though is a licencing system with proof, fit and proper etc.
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 Re: Championship clubs facing financial disaster
Topic Originator: Buspasspar  
Date:   Thu 12 Dec 09:27

The pre tax profit and loss chart does not bode well for the clubs in the red

Perhaps this one line from the report sums it up :-

More than half of clubs are spending more on wages than they make in income
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 Re: Championship clubs facing financial disaster
Topic Originator: eastendalloapar  
Date:   Thu 12 Dec 10:16

I think that many of the full time teams in our Championship will be in the same boat. However the money involved in Scotland will be hopefully significantly less.

matt forsyth
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 Re: Championship clubs facing financial disaster
Topic Originator: DunfyDave  
Date:   Thu 12 Dec 11:09

For salaries to outstrip revenues by 11% is extrordinary.

If it outstripped profits would still be terrible but more easy to understand but to outstrip revenues is unforgivable.

This isn't a business mode,l it isn't even a business it's a big fire full of cash and completely unsustainable

DunfyDave
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 Re: Championship clubs facing financial disaster
Topic Originator: GG Riva  
Date:   Thu 12 Dec 12:25

Quote:

eastendalloapar, Thu 12 Dec 10:16

I think that many of the full time teams in our Championship will be in the same boat. However the money involved in Scotland will be hopefully significantly less.


You have to think Dundee United are the biggest gamblers, but it looks like it might finally pay off for them this season. I wonder what their income: outgoings ratio is and if there are any other teams who are in an even worse situation. I noticed ICT got a mention further up.

All of this is quite alarming as it could quickly turn into a domino effect.



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 Re: Championship clubs facing financial disaster
Topic Originator: neils  
Date:   Thu 12 Dec 12:44

Agreed, if you keep throwing money, eventually will stick.

The big question is though, how on earth can they get that back? The Dundee Utd squad would have to be overhauled just to survive, we are talking, 5-10 M to be recovered in total, the extra TV money is 1M per season? And I'm really not sure there will be an increase of crowds either.

We have a team to support, good for me.
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 Re: Championship clubs facing financial disaster
Topic Originator: LochgellyAlbert  
Date:   Thu 12 Dec 12:54

Dundee United made their money from their youth development and also the foundations of their first team, changed days for them.

Probably get money for Shankland if he moves outwith the OF.
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 Re: Championship clubs facing financial disaster
Topic Originator: GG Riva  
Date:   Thu 12 Dec 14:30

Topic Originator: wee eck like | nolike
Date: Thu 12 Dec 08:26

There are some scary stats in that article. The significance of parachute payments now was illustrated by the statement that they now represent over 33% of total revenue in the Championship compared with just 9% when they were introduced in 2001/02. You have to wonder if they just tempt owners to gamble even more to gain promotion.

Is this because parachute payments are now much more generous, or because other sources of income have fallen drastically?

It's not that long ago that Championship clubs were left in the lurch in mid season by TV sponsors (was it Setanta or ITV?) and they tried to sue because they had set their budgets and many feared they would go out of business.

It would appear that lessons have not been learned.....



Not your average Sunday League player.
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 Re: Championship clubs facing financial disaster
Topic Originator: wee eck  
Date:   Thu 12 Dec 15:19

When parachute payments were introduced presumably it would be only the clubs that had been relegated from the Premiership the previous season who were benefiting. As clubs benefit for more than one season after relegation there will now be far more clubs in the Championship collecting parachute payments dating from the season they were relegated. If that is coupled with an increase in the amounts paid it's easy to see how clubs could have become more dependent on this source of revenue.
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 Re: Championship clubs facing financial disaster
Topic Originator: USMac  
Date:   Thu 12 Dec 15:25

If the bubble does burst, how would that affect clubs that sell players to the Championship? I don't know if any of our club's assets could at some point be sold directly to the Championship, but you think of Hamilton, for instance, which has sold several players to Championship clubs.
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 Re: Championship clubs facing financial disaster
Topic Originator: DunfyDave  
Date:   Thu 12 Dec 18:37

The bubble will eventually burst if they continue to allow salaries to exceed income by 11%.

The only way it can continue to work is for every single club in the championship to be owned by exceptionally wealthy people whom are prepared to continue funding the club's incredible shortfall forever and in tandem with every other owner of every other club. Their own little subbutteo.

This is simply just not feasible long term.

Listened to the past owners of Wigan on Radio 5 this morning relieved that his family are no longer involved in the club as they were contributing £1mill every month just to "top up the wages" that were the 4th lowest wage in the league at the time.

DunfyDave

Post Edited (Thu 12 Dec 18:39)
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