Cardiff City

[Davvo]

Beeb Story

 

This is seemingly the latest instalment in the bizarre world of football finance.

 

Cardiff, fortunate to avoid administration this year, are now apparently saved by a £6million investment. This investment gives the new guy (according to the story a 'billionaire'? worth £800million ) 30% of a club which is spending far more than it earns. They talk about backing the manager in the transfer market etc, but given the scale of investment it would seem unlikely this is going to be Sugar Daddy style. Therefore, it seems they are planning just on increasing debt further, given that additional revenues are going to be hard to come by having missed out on promotion.

 

It seems like you can take over a club, and load it with debt, aslong as you have a significant net worth. It has to stop, clubs have to be limited to "spending what they earn". I know there is some legislation coming in which is aimed at curbing this, but already we're hearing how clubs such as ourselves can circumvent the rules with a little creative accounting.

 

Cardiff fans deserve better than this false dawn. It just seems like the majority of teams in the Championship are gambling on getting promotion to ease their debts, but only 3 teams can go up, and those that come down are far richer. It's got to be stopped.

[Tosh]

Burnley went up and lived well within their means and did not blow all the Premiership money on bIG NaMEs and so lived well within their means

 

They knew they would likely go back down, and indeed have but this time with 2 years of parachute payments which will put them among the richer clubs in the division. Ergo with more chance a) of being promoted (and so on) and b) getting the better players at that level

 

So while we think the Premiership is "the rich" and the "less rich" (and the broke like us), I would think that the Championship is also heading the same way. The bigger/better supported clubs at that level (Newcastle, Leeds, Wolves ) will end up being near the top of the division anyway. Those that manage to get promoted and "do a burnley" will join them

 

Those that "do a Hull" and come down laden with tons of debt.....?