Jump to content
Sign in to follow this  
T

Deloitte Report

Recommended Posts

Just reading extracts from the Deloitte Report:

"A host of football league clubs are facing insolvency over the next few years due to the risk taking of their boards and legacy debt issues

Wages, debts and reveue across the premier league are at record levels.

The report claims english football industry is unique in that directors are not concerned with generating profits"

Share this post


Link to post
Share on other sites

[quote user="T"]Straight answer - No[/quote]

Well in that case could you please refrain from acting like somebody who works for them and make something up to prove wrong doing by those that run it.

 

Share this post


Link to post
Share on other sites

Sorry NN for ignoring the message board rules - totally unforgiveable of me to quote an independent report ;-)

Share this post


Link to post
Share on other sites
[quote user="T"]

Just reading extracts from the Deloitte Report:

"A host of football league clubs are facing insolvency over the next few years due to the risk taking of their boards and legacy debt issues

Wages, debts and reveue across the premier league are at record levels.

The report claims english football industry is unique in that directors are not concerned with generating profits"

[/quote]

I haven''t seen the complete report but the Times Online (28th May 2008) has a summary.

The comment about clubs facing insolvency that you quote refers specifically to Leagues 1 and 2 in the context of Rotherham, Bournemouth etc.

Regarding the CCC: "Championship clubs racked up debts of £289m [in 2006/7] with 10 clubs having debts of £10m or more.  [Dan] Jones [a partner in Deloitte Sports Business Group] says the only way to wipe out such arrears is promotion, which means more money on players, or finding a benefactor to pay it off."

 

 

Share this post


Link to post
Share on other sites
Great just had me wondering for a while anyway then mentioning you''ve been reading a report which costs a whopping £600 and probably isn''t of particular interest to anyone uninvolved with football finances I had to ask.Back to your OP then Mr T.Would you place Norwich City Football Club in the category of the "host of football league clubs facing insolvency over the next few

years due to the risk taking of their boards and legacy debt issues"?I would primarily for the legacy debt issues although borrowing money to gamble can easily be construed as risk taking.

Share this post


Link to post
Share on other sites
PP is correct the quote was mainly aimed at the lower leagues- NCFC will just cut the wage bill if they can''t find new investors but obviously that would increase the subsequent risk of relegation and potentially administration if the crowds declined so that the debts could no longer be serviced - I think this is why the club focuses on season ticket sales to make sure the debt can be serviced. We need new investors, The Board knows it, PC knows it. Eventually selling the land when the property market picks up would also make the debt position look much better - the shareholders loans are meant to tide things over until the land can be sold and/or new investors come in.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...