With all the stuff in the papers and TV about the Banks giving our money away and thus getting into debt should they ask for the money back that the Football Clubs owe. Liverpool owe 350 Million, Manchester United owners (Red Football) owe 490 million and loads of other Clubs are in the same position. Surely this is Tax Payers money yet we don't hear the masses crying that the Clubs are screwing us and calling for the Bosses to take massive pay cuts or resign. Discuss!
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How many clubs would go under if there debt was called in ...
more than a few me thinks.
@manx -
Who do Liverpool owe ?350m too..? That's old info you have there mate.. Liverpool are debt free.. As for City, Chelsea or UTD owing tax payers money..? How..??
They have working debt, if they can't pay their bills then fair enough..
That's like saying no one should be allowed a mortgage or a loan..Last edited by opsmonkey; 8 April, 2011, 22:14.
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don't do football, but sake of argument, them above names were tesco.com, asda.com, sainsburys.com, and we assume Manxspud is correct????
sigpicWas Banned For Being Certifiably Insane and StupidComment
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Chelsea's debt is that of it's billionaire owner, same for Man City.. They could clear it in an instant.. Man UTD have debt but are far from going bankrupt..
None of these clubs owe money to the government or have fallen behind with payments to banks..Comment
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The majority of Liverpools debt is to the Royal Bank of Scotland which is 84% owned by the state, funded by the tax payer. Liverpool loans shifted by RBS into 'bad debts' division - Telegraph Football clubs as a whole are treated differently from any other business and it was just a point I was trying to raise.
The majority of people are calling for the Banks to be allowed to fail as they have gotten themselves into debt and what I am trying to highlight is if the Banks called in their debts the Banks wouldn't fail but thousands of other businesses would.
The Glazer family are a prime example. They keep borrowing extortionate amounts for their next business deal and keep moving on leaving a trail of destruction behind them. They made their money in shopping malls, food processing etc throughout USA. In anyones eyes they are financialy Bankrupt yet they seem to be lent money to invest in the next white elephant.
I just believe the Football Clubs are acting in the same, if not worse manner than the Banks in having Debts which if they were called in could not be met. It wouldn't necessarily be the Clubs debt that are called in but if they had their other debts called in they would be up the creek without a paddle.Comment
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Of course the banks should call in the debt. Football Clubs have been living beyond their means for years in chasing glory - knowing that the banks would be sympathetic in main due to the emotional and community attachment to the clubs (as well as some debt being serviceable). Now the banks can't really get a whole lot more unpopular than they already are, so they have nothing to lose in calling it in.
There are enough peeps bleating on about 'tax payers money going here & going there' well the money keeping many football clubs a float is also tax payers money!
This isn't just a UK thing of course. The biggest exploiter of them all has been Real Madrid who have had hundreds of millions of debt written off by very sympathetic Spanish banks over the years.Comment
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Football is now a massive industry, and with any industry there are loans. As long as the loans are paid back on time and in full, what is the problem?
Football employs thousands of people up and down the country, and plenty of other off shoot industries. Pull the plug on the loans and you destroy thousands of people lives in one fell swoop.
Totally illogical....Comment
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The thing is that these loans are not being paid on time by many clubs, that's the issue. There is a long list of clubs in the last few years that have been defaulting on payments - not normally the massive clubs. Why should football clubs get away with this? Because up and down the country thousands of people (many hundreds of which multi millionaires) are employed by clubs. What about other industries - should they be afforded the same luxury?
Also a large proportion of the money in football goes overseas. I'm not saying in other industries this doesn't happen, but I'm sure not the same percentage?
I love my football as much, if not more than the next guy. But there needs to be tighter restrictions on clubs spending put in place at the very least.Comment
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Agreed the lower league clubs are probably not the most cash rich clubs, but then the loans are not as big as the premier league.
I do believe UEFA is bringing in plans next season to curb this by banning clubs spending more than their earnings.Comment
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Yeah, Platinti is looking at the French model which has worked for several years, but clubs there too are going through hard times - the difference is that there debt is much smaller than over here.
I think it's a step in the right direction from Uefa, but if push ever does come to shove, would Uefa take action against some of the massive clubs in Europe - banning them from the Champs League etc? I don't think they would, but that's for another thread.Comment
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I do think Platini is bit of a maverick, so I bet he will back up his rules and regulations. Maybe not immediately, but if clubs continued to ignore the warnings then I feel he would do somethingComment
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why would they they make interest on loans so they make more money
the whole point of any bank giving loans is they get more cash back than they laid out thus making the bank money which is what they want
calling in loans early is not going to make as much money long term
much like credit cards banks want you paying for as long as you can they do not want quick repayments
quick repayments = less interest = less money = less profitComment
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