The Insanity of English Football

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A further sign of the acute financial predicament of the English game was posted yesterday when Manchester United's parent company, Red Football Joint Venture, published their accounts for season 2007-2008, when the club won both league and Champions League.

Turnover rose by 20% to £256.2m, levels never previously seen by an English club, but despite making a remarkable £20m profit on transfer deals (the full value of the Tevez purchase was not recognised in these accounts), they still made a loss of £44.8m, with debt rising to £692m.

While interest rates are falling for most of the world, Manchester United are stuck with Payment in Kind loans at a rate of 14.25%, the outstanding value of which rose from £152m to £175.5m during the season as the company was unable to find alternative finance. Again.

As with most the clubs in the FA Premier League, Manchester United are a bloated monolith. The current business model is unsustainable, debts are rapidly approaching three times turnover and unless significant player sales occur, debt will continue to rise for years to come.

Interest payments totalled £68.8m and that is just to keep the debt standing still. It will take a generation of penance to meet interest payments and pay down the loans to get the club within striking distance of where it was before the Glazers took over.

And let's not forget, this is without the football income bubble bursting!

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http://www.celticquicknews.co.uk/200...glish-foot.php

Fuck.

real madrid suffers from the same problem. clubs will have to make serious investments in their youth schools during the next years, or the whole international transfers structure may crumble.

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Real Madrid Revenues To Hit All-Time High

The world's most profitable football club continue to triumph over the global credit crunch, and with flying marks...
31 Mar 2009 17:57:09

Businesses around the world have been shedding tears ever since early September, when the global financial crisis took its toll on the world's largest corporations. The same can't be said about Real Madrid though, who released their financial expectations for the 2008-09 season to reveal some shocking revelations.

According to a report released by Agence France-Presse, Real Madrid have announced that they are expecting a record €407 million in revenue by June, up from €366 million during the same time last year.

Even more impressive, pre-tax profits are expected to rise to a whopping €58 million. This would see Real Madrid emerge as the world's highest earner in terms of both revenue and profit.

As for the club debts, which have been a controversial issue ever since the infamous 'Galatico' Era, they are expected to drop to €125 million, a world-record 37.5 per cent decrease in total.

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http://www.goal.com/en/news/1705/rea...-all-time-high

Not really the same situation I wouldn't have thought. Not by a long way.

In accountancy speak "it will all end in tears".

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Originally Posted by Biggles

In accountancy speak "it will all end in tears".

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You and your jargon.

Explain it for the hoi polloi.

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Originally Posted by Biggles

In accountancy speak "it will all end in tears".

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Does that mean we'll have to won the league cup every year? :no:

As long as we get £100 for Nani i'll be happy.

It will be Gretna all over again.

Do you wish that Sky TV hadn't ruined English Football?
Ever since they've had the monopoly of the Premiership/ league football has moved away from it's roots of being the working class mans sport to the businessmans box/ mega expensive rich mans sport it is today. I for one wish they'd never existed.

http://uk.answers.yahoo.com/question...8020422AASC5by

I think it's all Jade Goody's fault.

You would say that.