Clubs in trouble

[Lowendbehold]

Sorry to piss on the parade, but there is no chance in hell that Liverpool or Man Utd will go tits up. If things really start heading towards that there would be a queue of oil barons willing to buy them up.

Just because they are big clubs, doesn't mean the same business principles that apply to the likes of Portsmouth, West Ham and Palace do not apply to them.  Its just that the scale is much much bigger.

I suspect there are some 'oil barons' watching the situation at Liverpool, but they do not appear to be jumping in just yet.  They may well be letting the value drop and then they will come in and buy as cheaply as possible.

Business is business and if Liverpool have hit the tipping point and cannot meet their interest payments their situation will only deteriorate.  There is no point in H & G selling for nothing more than the amount of debt.  They will get nothing.  So they sit there and the club withers on the vine.

The same could happen to Man U.

[Jimbo]

Yes, well, don't hold your breath.

[Concrete John]

Just because they are big clubs, doesn't mean the same business principles that apply to the likes of Portsmouth, West Ham and Palace do not apply to them.  Its just that the scale is much much bigger.

The difference is Portsmouth couldn't attract a rich owner to make all their troubles go away.  Liverpool or Man U could.

I suppose the only thing is that sheer size of debts mean an increasingly limited number of investors could actually do this.

[Lowendbehold]

Just because they are big clubs, doesn't mean the same business principles that apply to the likes of Portsmouth, West Ham and Palace do not apply to them.  Its just that the scale is much much bigger.

The difference is Portsmouth couldn't attract a rich owner to make all their troubles go away.  Liverpool or Man U could.

I suppose the only thing is that sheer size of debts mean an increasingly limited number of investors could actually do this.

The situation at Liverpool is more similar to West Ham than Portsmouth because the banks are the main creditors.  The banks will be reluctant to allow the debt to increase, but neither will they want to force the club into Administration let alone liquidation.

I thought it was noticeable the two porn kings did a deal at west ham when the club were sliding into a relegation situation.  At that point the banks may have compromised their demands so a deal was struck at what S & G thought was the best time.

The same could happen at Liverpool with potential buyers forcing the banks to take control from H & G who will otherwise not sell unless they get something out of it.  The whole thing could get really messy.

[SoccerHQ]

Yes, well, don't hold your breath.

Liverpool are fcuked and I can see them finishing 8th or 9th next season lower than this season.

Think I'll take the situation where we're also finishing above Manure every season.

[Lowendbehold]

Yes, well, don't hold your breath.

Liverpool are fcuked and I can see them finishing 8th or 9th next season lower than this season.

Think I'll take the situation where we're also finishing above Manure every season.

I agree, so does Martin Samuels of the Daily Mail, only for reasons i had not considered.

http://www.dailymail.co.uk/sport/football/article-1283797/If-Liverpool-wrong-heading-footballing-oblivion.html

[pablopicasso_10]

considering some of the comments coming from the bin dipper fans during their gareth barry humiliation, and a comment i read yesterday about the "hilarious indignity of being linked to aston villa's manager", i couldnt think of a better situation to happen to a more disgusting bunch of cretins than for them having to climb off their matchstick leg high horses and slum it in the real world...

for their excellent work at the bin dippers, i think we should knight the fat waiter, along with mo and curly...

[Concrete John]

Yes, well, don't hold your breath.

Liverpool are fcuked and I can see them finishing 8th or 9th next season lower than this season.

Think I'll take the situation where we're also finishing above Manure every season.

I agree, so does Martin Samuels of the Daily Mail, only for reasons i had not considered.

http://www.dailymail.co.uk/sport/football/article-1283797/If-Liverpool-wrong-heading-footballing-oblivion.html

Quite a good piece that!

It's interesting what he says about the impending new financial rules and clubs surviving on turnover alone.  That would put those in the CL at considerable disadvantage and may make breaking in even harder.  Although I wonder how they'll apply it to Real madrid?

Anyway, I just think that clubs will find a way around the new rules - Liverpool included should they get new owners!

[dave.woodhall]

Clubs got round the rules that prevented them from floating by starting up holding companies. They'll do similar for any new regulations.

[Lucky Eddie]

For those too young to remember a time when the mousers were the single dominant force in world football; I would just like to say: fcuk them, fcuk them all. You were loathesome then and you are loathesome still.

That is all.

[pablopicasso_10]

Quite a good piece that!

It's interesting what he says about the impending new financial rules and clubs surviving on turnover alone.  That would put those in the CL at considerable disadvantage and may make breaking in even harder.  Although I wonder how they'll apply it to Real madrid?

Anyway, I just think that clubs will find a way around the new rules - Liverpool included should they get new owners!

it wouldnt put them at a disadvantage...

they get the champions league finances more than those without it to add to their turnover...

its nothing more than double glazing the glass ceiling, under the guise of "fair play", so that eufa have their unnoficial european super league...

certainly makes breaking in even harder...

(unless you meant it put those in the champions league at a considerable advantage)

[pablopicasso_10]

Clubs got round the rules that prevented them from floating by starting up holding companies. They'll do similar for any new regulations.

indeed... there will always be ways for clubs to legally get around the rules...

[Concrete John]

(unless you meant it put those in the champions league at a considerable advantage)

Yep, that's what I meant - it was a typo on my part!

[Lowendbehold]

Correct me if I am wrong but I thought the new rules also put a limit on debt.  That was why The Russian wrote off the debt to himself from Chelsea, by issuing new shares to himself.

While the Russian can do that at Chelsea and randy could do it at Villa, it is hard to see how it could be done at Man U and Liverpool where the debt is to banks and financial institutions.

[Concrete John]

The debt is to the Lerner family trust and not Randy personally, although I'm sure he could leverage it some way if necessary.

With Man U at least, I thought it was a new holding company they created to buy the club that held the debt, although I may have that wrong!