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[Football] Championship Bubble waiting to burst?







Harry Wilson's tackle

Harry Wilson's tackle

Harry Wilson's Tackle
NSC Patron
Oct 8, 2003
49,953
Faversham
Not news....
 


Chicken Run

Chicken Run

Member Since Jul 2003
NSC Patron
Jul 17, 2003
18,434
Valley of Hangleton
Have to say whilst the subject was depressing new for EFL clubs Radio 5 was a joy without GE/Brexit bollox, I even learnt there where many different types of eating disorders!
 


KZNSeagull

KZNSeagull

Well-known member
Nov 26, 2007
19,802
Wolsingham, County Durham
Chicken Run said:
Have to say whilst the subject was depressing new for EFL clubs Radio 5 was a joy without GE/Brexit bollox, I even learnt there where many different types of eating disorders!
Click to expand...

I agree, other than Rachel Burden bursting into tears. Chloe Tilley cutting off callers who started talking politics was a highlight. I did not hear the chief DULLARD either - would have thought he would have been all over this story. Has he been sacked?
 






pasty

pasty

A different kind of pasty
Jul 5, 2003
30,272
West, West, West Sussex
And there was me thinking FFP was brought in to prevent clubs overspending. Oh well.
 




B

Brovion

Well-known member
NSC Patron
Jul 6, 2003
19,363
Given our losses it might be worth pointing out to the Championship clubs that getting to the PL doesn't mean hitting some sort of financial jackpot that solves all your financial problems and clears all your cumulative losses. Ok it can do, but not if you promptly spend all the new-found dosh on PL transfer fees and wages, which are MUCH higher than Championship fees and wages. The income goes up massively, but if the costs also go up massively then you're where you were before.
 




S

SAC

Well-known member
May 21, 2014
2,549
pasty said:
And there was me thinking FFP was brought in to prevent clubs overspending. Oh well.
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It would have. The initial introduction of FFP stopped clubs going tits up, clubs had to keep to the limits but then went and voted to massively increase the limits (and their debts).

£5 million per club was probably manageable by most but rich owners wanted to right to gamble the future of a club on getting into the PL by increasing that limit to £13 million. Even this isn't enough for some clubs.
 


Icy Gull

Icy Gull

Back on the rollercoaster
Jul 5, 2003
72,015
Fabulous division if you’ve got a half decent squad and it’s not your money disappearing down the drain every time you fail to get promoted
 


Lower West Stander

Lower West Stander

Well-known member
Mar 25, 2012
4,753
Back in Sussex
Brovion said:
Given our losses it might be worth pointing out to the Championship clubs that getting to the PL doesn't mean hitting some sort of financial jackpot that solves all your financial problems and clears all your cumulative losses. Ok it can do, but not if you promptly spend all the new-found dosh on PL transfer fees and wages, which are MUCH higher than Championship fees and wages. The income goes up massively, but if the costs also go up massively then you're where you were before.
Click to expand...

True, but it’s the value of the club rather than its financial performance which makes owners take chances.

Profitability doesn’t really come into it. Equity tends to be valued on growth rather than the bottom line.


Sent from my iPhone using Tapatalk
 




B

Brovion

Well-known member
NSC Patron
Jul 6, 2003
19,363
Lower West Stander said:
True, but it’s the value of the club rather than its financial performance which makes owners take chances.

Profitability doesn’t really come into it. Equity tends to be valued on growth rather than the bottom line.


Sent from my iPhone using Tapatalk
Click to expand...

Yeah, valid point. I forget that not all owners are fans like TB, some just see it as an asset to exploit and then sell.
 




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