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the credit crunch and us and football in general

Interesting discussion on 5 Live last night about football finances - David Gold was on and he reckons most chairmen are only just realising that they're in for a big shock, money-wise this summer, while David Pleat thought he could see reserve sides being cut and - guess what - a return to groundsharing coming out of this. Meanwhile, the chairman of Ayr United was on, saying his club was in trouble because their plans for a new stadium are screwed because Barratt Homes have pulled out the deal.

Obviously some clubs have very specific problems - we know about West Ham, while there's debt issues at the top of the tree with Manchester United and Liverpool. But while I'm not sure I agree with Pleat on groundsharing, with banks unable to lend money there's surely going to be a huge shock coming to the game.

It might force clubs to live within their means, but it could be gruesome first...

Comments

  • I agree.

    Hopefully it could also mean that the pain we have endured during the summer in terms of cost cutting and living within our means could possibly put us ahead of the game going forward. Or is that wishful thinking?
  • [cite]Posted By: Brunello[/cite]I agree.

    Hopefully it could also mean that the pain we have endured during the summer in terms of cost cutting and living within our means could possibly put us ahead of the game going forward. Or is that wishful thinking?
    I've always felt it's very much forward thinking by our board. I'd always hoped when the arse does fall out of it all we'd be in the top flight. Who knows, it might yet happen!
  • If banks dramatically reduce their overdraft facilities with clubs, its going to have a big impact to the majority of clubs.

    If, on a wider society angle, tv subscriptions, viewing figures etc are reduced over the next few years, and the next tv deal is much lower than the current one, it will hurt the top of the tree.

    I've been expecting with others football to go 'bang' for 3-4 years now, but i'm coming to the thinking it never will. Sure, its due a slight pullback, but there always seems to be a steady stream of investors seeking to take it to the next level.
  • The horrifying thing is if lower-league football goes bang - but the current top clubs sail on completely unaffected.

    There's an issue in the Premier League with Setanta - there's question marks over whether they'll find the money to bid for a new TV deal. But then again, the PL's been boosted by huge TV money from overseas as well.
  • edited October 2008
    [cite]Posted By: AFKABartram[/cite]
    I've been expecting with others football to go 'bang' for 3-4 years now, but i'm coming to the thinking it never will. Sure, its due a slight pullback, but there always seems to be a steady stream of investors seeking to take it to the next level.

    AFKA you were saying exactly the same about the housing market 6 months ago.
  • the Spurs and chelseas of this world can't keep charging £48 for tickets without justification. No wonder Spuds fans are pissed off so would I be.

    I think we'll see crowds get smaller but not at the big clubs cos we know for every fan that won't go to Chelsea or Spurs there's some plastic i nthe background who will.

    It says something when a two bob club like QPR want to charge £40 for a Championship game.

    The groundshring thing is a no brainer surely. Everton and Liverpool could build an 70 thousand all seater stadium no problem. They are both struggling to make ends meet on building new stadiums each so why not. But where it would be more beneficial is at lower league level - I know it is not an Englsih thing but clubs have seriously got to think about it.

    Forest and County
    Hartlepool Darlington
    Bristol Rovers and City
    palace and brighton - just kidding Budgie
    grimsby and scunthorpe

    you get my drift anyway.
  • I don't think the Premier League are worried about Setanta to be honest, cause they (probably rightly) think that Disney are going to launch ESPN in the UK, and take Sky to cleaners.
  • If the recession becomes as bad as the media is telling us football will undoubtedly suffer.

    People will start to cut down on their luxury spending. I currently pay £47 per month for Sky subscription and that may well be cancelled shortly. If only a few percent of Sky subscribers cancelled there contract that could start to have an impact on future deals between Sky and the Premier league. Also we need to remember that this recession is world wide not just the UK. So other countries that also take the Premier league may renegotiate their contracts.

    More importantly to clubs like Charlton is the current cost of attending football matches. Some fans will not be able to afford season tickets, and fans will be choosier when attending away matches. If this happens the revenue taken at the grounds will suffer.
  • Allready cut the Sports and movies
    Also on match day leave the house a good hour later than the norm to help save on a round or two all adds up.
  • I posted this a few weeks ago and nobody seemed interested at the time.

    Previous thread

    I think there is going to be major fall out from all of this. I truely hope what appears to be Charltons sound financial approach will makes us less vulnerable than some.
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  • edited October 2008
    what might make football go bang is when the premierships teams dominate Europe to such an extent that the other nations in UEFA screw 'us' by either reducing 'our' place or rules on foreign ownership or players. Admittedly at least the latter two of these may be hard to pull off, who knows what is around the corner though.
  • Teams like Palace must be worried as they have no physical assets (training ground, stadium) to leverage their loans against. Meaning that what credit they can get will be at huge rates.

    Probably why Jordan has moved the ownership onto an Investment Management company so that the bills can be paid.
  • He's going to have trouble selling Palace in this climate as well - and their crowds aren't as healthy as ours (hey, we're worried because we're slipping below 20,000, they can't even make 14,000).
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