Where is football going? AFC Bournemouth post £15.3m loss for 2012-13

[Fulwood Blade]

WTF !!

where is football going if Bournemouth have posted a £15.3m loss just getting out of the 3rd tier.

Bolton have a combined loss of £160+M
QPR have lost millions last and this, others have hugh debts too - Leeds losing £1m per month, our porcine neighbours, £5m a year.

What has happened to FFP?

I can just see the FA and FL bottling relegations as punishment, especially seeing as the gang of 10 in the 2nd tier, led allegedly by the secretive Gartside of Bolton, that are actually trying to challenge the virtues on any kind of cap.

We all believe we want 4 or 5 decent signings for next season we will just have to hope our new benefactor has DEEP pockets...............or perhaps he actually hasn't!

UTB

 

[Sensiblade]

No businesses should post losses and survive like football clubs do.
It's crazy.
If a local store posted equivalent losses they'd close their doors and never open again.
Football finance is a scary world.

 

[grafikhaus]

No businesses should post losses and survive like football clubs do.
It's crazy.
If a local store posted equivalent losses they'd close their doors and never open again.
Football finance is a scary world.

Oh I dunno. Banks, for example. It's the old 'too big to fail' bollox. Expose your creditors enough and they'll take 10p in the £ and be happy about it. If you're Man. City, good on you. If you're the likes of Rotherham, shame on you.

 

[PeterNdlovu081]

I'll carry on saying it until I'm blue in the face, players' wages are out of control. It's a domino effect from the top down.

By 2025 there'll be a player getting £1m a week. Mark my words.

 

[ryza]

I sometimes question why businesses buy into clubs...Is there actually any profit from owning a football club.

 

[sitwell]

I sometimes question why businesses buy into clubs...Is there actually any profit from owning a football club.

Money laundering ? Just my hunch.

 

[UnitedBlade]

WTF !!

where is football going if Bournemouth have posted a £15.3m loss just getting out of the 3rd tier.

Bolton have a combined loss of £160+M
QPR have lost millions last and this, others have hugh debts too - Leeds losing £1m per month, our porcine neighbours, £5m a year.

What has happened to FFP?

UTB

On Bournemouth, I did try to point out to people at the time that they were spending way, way above their revenue on fees and wages.

The very sad fact is it is within the FFP rules providing it is "Equity" investment. This Russian with more money than sense must have been putting in one-off injections of "equity" (ie cash for fees and wages).

FFP is specifically designed to stop people putting in this money using loans, which is what people have done in the past.

Brentford have also been spending more than they receive for a couple of seasons now. (Rich owner from the City)

Swindon did it to get out of their transfer embargo last season and Coventry have done it (although I strongly suggest someone looks closely at their books) and will do it for two more years whilst the twats there send their club to play at Northampton.

Bolton will continue to gamble with parachute payments to try to get back to the PL. Gartside isn't putting in the money, their owner Eddie Davies is. The thing here is he can afford it (I think) and he doesn't want it back. I guess he'll convert to equity at some point.

To be fair, the porcine are only losing what most Championship clubs lose at the bottom of the table.

We've paid players far, far too much for too long and no one seems capable of changing it.

It's madness.

Sorry, just seen your question "Hell in a Hand Cart" is where it's going.

Just looking at the BBC report now and it says he's addressing it with a £8.7M loan - I give up, I don't know what the fuck is going on unless he can now do this because they are a Championship club with different FFP rules.

 

[Hartley Hare]

"Down the pan"

It will not be long before a big football league club has to do a Rangers, and start again.

HH

 

[Flatulent_Bob]

WTF !!
We all believe we want 4 or 5 decent signings for next season we will just have to hope our new benefactor has DEEP pockets...............or perhaps he actually hasn't!

UTB

We actually know he isn't that rich comparatively, so I'm not sure why fans seem to think we're backed by a billionaire owner.

 

[UnitedBlade]

This is now irritating me beyond belief. Does anyone know Craig Burns well enough to ask how on earth a L1 club like Bournemouth can do this ?

We've been told that clubs have to submit forecasts monthly (I think). They certainly have to do a big submission just before the January transfer window.

Bournemouth's 2013 accounts aren't visible on any sites yet so I can't look up wages.

But taking Brentford as an example. To May 2013 (last season not this), their turnover was £3.9M. Their wages were £6.4M.

Now I know accounts don't separate FFP wages so it wages of all staff but they must be paying more than 60% of turnover to players.

They should have a player wage bill of £2.34M to hit the 60%. You're not telling me that an additional £4M of their wage bill is taken up by laundry, the ticket office and David Weir's amazing coaching classes.

Genuinely, what the fuck is going on ?

 

[bricktop]

I'll carry on saying it until I'm blue in the face, players' wages are out of control. It's a domino effect from the top down.

By 2025 there'll be a player getting £1m a week. Mark my words.

In 11 years? I would guess within the next 5 years at the very latest.

 

[zablade]

where is football going? If it carries on the way it is within 20 years I can't see there being more than about 40 pro teams able to survive and then in more or less a closed shop of two divisions, the rest will be in a semi pro regional structure with maybe one promotion place into the top 40 available each year, and then only If they are able to win a play off against the team finished bottom of the premier league second division or whatever it's called.

 

[Dkc]

People have been saying things like that ever since football went pro.

As long as millions of people all over the world prefer to watch English football over their own national leagues, there will be plenty of money in the game - at least in the Premier League. I wouldn't rule out clubs going bust though, especially big clubs that get relegated to the third tier with huge debts. Birmingham could be in real trouble if they go down.

 

[Bladesway]

Wage capping is one solution but why is any of the above a shock to anyone. The sport most of us knew left in the early 90s when the cheats league was formed. The clamour to get in and not to fall out is beyond the pale.

 

[UnitedBlade]

http://www.bournemouthecho.co.uk/sport/cherries/clubnews/11180579._/?ref=twtrec

Found an article that explains more on Bournemouth - £11M wages in L1 (OK, I know not all players wages).

Issue of £7.4M preference shares must have got round SCMP. But there's still a loan of £8.7M.

It's a joke.

 

[JJ Sefton]

Which investors are making money out of football, especially at this level, I'd love to know.

 

[ryza]

Does anyone know any handy statistics for the average revenue being put into football as a whole and player wages back 'in the day' compared to now? I know players got paid a lot less for the time but it'd be interesting to see the increase.
I do like how rugby have done it with wage caps.

 

[JOEYDEE]

Man city have recently released their results,their 25 man squad,receives an average of 100k EACH pw !So that makes their top players on 200 k ?,Cos surely they don't all get exactly the same !

 

[bricktop]

I've been saying it for years, and it has not come to pass, although it will do sooner or later, and that is the fact that the bubble will burst. The TV money will try up, there will be an majority of people that will decide that Sky Sports, and all the other sports channels aren't worth it any more, football will be less in vogue and the lot will go pop, and it will face a huge financial crisis.

It might not be today or tomorrow, but it will happen sooner or later.

 

[BornOnShorehamStreet]

In 11 years? I would guess within the next 5 years at the very latest.

Some are probably getting that now what with personal endorsements etc

 

[georgebernardshaw]

I sometimes question why businesses buy into clubs...Is there actually any profit from owning a football club.

It's about the prestige massaging an ego - the only way to make £1 million out of owning a club is to start with £200 million.

The smart way to make money out of football is to be an agent, ripping the guts out of both player and club, which is probably where the OP's question came from.

Another question: what would happen if Sky went tits up?

Hell in a handcart? Bloody right, mate.

 

[stringjunior]

I've been saying it for years, and it has not come to pass, although it will do sooner or later, and that is the fact that the bubble will burst. The TV money will try up, there will be an majority of people that will decide that Sky Sports, and all the other sports channels aren't worth it any more, football will be less in vogue and the lot will go pop, and it will face a huge financial crisis.

It might not be today or tomorrow, but it will happen sooner or later.

This might happen, and actually I'd quite like to see it happen, but I doubt it will. We are increasingly becoming a nation of slobs and couch potatoes who must have entertainment fed to us rather than making our own entertainment, and Sky, BT and whoever jumps in will continue to feed society what they want whilst earning masses from advertising revenue. It's an every decreasing circle for us, and an ever increasing circle for the broadcasters.

But wouldn't it be nice to scrap the whole damned model and put football back on council telly.... After all, surely players don't need to earn more than £100k a year, do they? (Obviously they do at the moment in order to maintain their current lifestyles, but you know what I mean). Of course, it aint going to happen....

 

[Darren]

Which investors are making money out of football, especially at this level, I'd love to know.

Very few I would magine.

I have said this before, but footbal clubs are, on the whole, items of consumption not investment Some very wealthy men like to spend their money on yachts , fast cars and fast women and some like to spend it on footbal clubs . They are rich men's toys.

 

[grafikhaus]

Money laundering ? Just my hunch.

Talking of which...

People have been saying things like that ever since football went pro.

As long as millions of people all over the world prefer to watch English football over their own national leagues, there will be plenty of money in the game - at least in the Premier League. I wouldn't rule out clubs going bust though, especially big clubs that get relegated to the third tier with huge debts. Birmingham could be in real trouble if they go down.

Birmingham on the brink

If you can't be bothered with the whole article, try this for size:

Doubts persist over the more recent additions. ‘The attitude of some of the loan players stinks. They don’t care if they get beat,’ said one source. Allied to this is the looming presence of 6ft 7in striker Nikola Zigic, who is on a staggering wage of £65,000 per week with an additional signing-on fee each season of £250,000. His annual salary nearly matches the entire gate receipts of £4.2m from last season. Fortunately for the club, his contract expires in the summer.

 

[Still Crazy]

Man city have recently released their results,their 25 man squad,receives an average of 100k EACH pw !So that makes their top players on 200 k ?,Cos surely they don't all get exactly the same !

This is not just restricted to Football. Man City were the top, of that list, 2nd were NY Yankees 3rd were the LA Dodgers both Baseball teams. It seems to be that Football as a global sport have to pay more and more for "talent". 5 of the top 10 higest paid teams are Football teams.

Sport that has a worldwide following pays people way too much money.Roger Federer earned $71m in 2013. I know $40m came from sponsorship but $31m is still a lot of money.

 

[borbokis]

People slag off Sky, saying they've ruined football, but how many times have they brought us John Terry crying in HD?

 

[Highbury_Blade]

http://www.theguardian.com/football/2014/may/01/premier-league-clubs-record-wages

 

[Kev Gee]

Im sorry but i cant see the Football bubble bursting.
If it was going to happen then it would have done arund the recession. (people cancelling sky subscriptions etc)

If anything its gotten stronger & bigger worldwide. It will be interesting to see how things go if Man U keep sliding however. (esp in Asia)

 

[felix]

http://www.theguardian.com/football/2014/may/01/premier-league-clubs-record-wages

Interesting stuff indeed. Only two Premier League clubs, Norwich and Swansea, were in the black at the end of the season. Chelsea's total debt was an unimaginable £958,000,000.

2012/3 Premier League Wage Table:

1 Man City £233m
2 Man Utd £181m
3 Chelsea £179m
4 Arsenal £154m
5 Liverpool £132m
6 Tottenham £96m
7 QPR £78m
8 Villa £72m
9 Fulham £67m
10 Everton £63m
11 Newcastle £62m
12 Stoke £60m
13 Sunderland £58m
14 West Ham £56m
15 West Brom £54m
16 Norwich £51m
17 Swansea £49m
18 Southampton £47m
19 Reading £46m
20 Wigan £44m

The most appalling fact in the Guardian's report is that of the top clubs only Man City have guaranteed to pay their cleaners, caterers etc more than the minimum wage. While clubs pay their chief executives £millions per year and players in excess of £100,000 per week the poor souls who clean the toilets get more or less bugger all and have to claim benefits to make ends meet.

 

[YES Blade]

Im sorry but i cant see the Football bubble bursting.
If it was going to happen then it would have done arund the recession. (people cancelling sky subscriptions etc)

If anything its gotten stronger & bigger worldwide. It will be interesting to see how things go if Man U keep sliding however. (esp in Asia)

Man U's Asian "fans" will just move on to Man City, Chelsea or whoever happens to be winning at the time.