Uncle Buck
Ghost Writer
- Jul 7, 2003
- 28,075
Taken from the Guardian;
Keegan offers Mills a small fortune
Dominic Fifield
Wednesday July 14, 2004
The Guardian
Manchester City have ignored growing fears over their worsening finances by handing the former England full-back Danny Mills a five-year contract which will cost them around £30,000 a week.
It effectively equates to a long-term commitment of more than £7.5m for a club whose debts swelled to £50m for the 2002-03 season. That figure is likely to be grimmer now because Kevin Keegan has added high earners to the squad with very little sell-on value such as David James and Trevor Sinclair.
Mills completed his free transfer from Leeds United yesterday, with City using the lack of a fee to bolster the wages they could offer.
City have been able to finance the move because, like Leeds, they have raised money through securitisation, borrowing £30m against future ticket sales.
Mills had four years left on his £40,000-a-week deal at Leeds, who will continue to pay the balance of £10,000.
The move has amazed financial analysts. "At a time when most clubs appear to be regulating wage bills to offer a five-year contract is very generous," said Vinay Bedi of Brewin Dolphin Securities.
"We are seeing the majority of deals being done without transfer fees. There's a cash-flow benefit to clubs as they do not have to hand out large sums straight away.
"Yet the long-term implications connected to that wage, as Leeds discovered, are quite severe if you suddenly find yourself in financial difficulty. Five years is quite a long-term commitment and getting rid of players is a hell of a lot harder than bringing them in."
Keegan offers Mills a small fortune
Dominic Fifield
Wednesday July 14, 2004
The Guardian
Manchester City have ignored growing fears over their worsening finances by handing the former England full-back Danny Mills a five-year contract which will cost them around £30,000 a week.
It effectively equates to a long-term commitment of more than £7.5m for a club whose debts swelled to £50m for the 2002-03 season. That figure is likely to be grimmer now because Kevin Keegan has added high earners to the squad with very little sell-on value such as David James and Trevor Sinclair.
Mills completed his free transfer from Leeds United yesterday, with City using the lack of a fee to bolster the wages they could offer.
City have been able to finance the move because, like Leeds, they have raised money through securitisation, borrowing £30m against future ticket sales.
Mills had four years left on his £40,000-a-week deal at Leeds, who will continue to pay the balance of £10,000.
The move has amazed financial analysts. "At a time when most clubs appear to be regulating wage bills to offer a five-year contract is very generous," said Vinay Bedi of Brewin Dolphin Securities.
"We are seeing the majority of deals being done without transfer fees. There's a cash-flow benefit to clubs as they do not have to hand out large sums straight away.
"Yet the long-term implications connected to that wage, as Leeds discovered, are quite severe if you suddenly find yourself in financial difficulty. Five years is quite a long-term commitment and getting rid of players is a hell of a lot harder than bringing them in."
