Despite the protests of Manchester United fans, the financial situation of the club is improving according to new figures showing an increase in revenue and profits.
The figures for the six months up to December show turnover up 19% to £144.7million from £121.7million for the equivalent period in 2008, largely due to increases in match day revenues, TV money – particularly from the Champions League – and commercial revenue.
Media revenues have increased 33% from £40.3million to £53.4million and commercial revenues up 16% from £33.5million to £38.7million. Read more... (175 words, 2 images, estimated 42 secs reading time)
Portsmouth are in such dire financial straits that they have asked the Premier League if they can sell players outside the transfer window.
However, the move will depend on their request being sanctioned by the Football Association and FIFA as well as the Premier League.
A spokesman for Pompey said:
“I can confirm we have put in a request to the Premier League to sell players outside the transfer window. It is something we are exploring.”
Pompey have not identified any specific players for sale but reports suggest Algeria World Cup star Nadir Belhadj, midfielder Kevin Prince-Boateng and young defender Mark Wilson could be made available according to published reports. Read more... (157 words, 3 images, estimated 38 secs reading time)
The financial troubles at Portsmouth go from worse to worse as the club’s web site has been closed down today due non-payment.
If Pompey doesn’t have the money to pay for a web site, how can it meet its payroll of around £1.8m that is due tomorrow? Pompey has already been late paying its players at least three times this season.
In addition to meeting payroll, Pompey also has a £9m payment to former owner Sacha Gaydamak that is due by midnight on 31 January. What are the odds that payment will be made? Read more... (118 words, 3 images, estimated 28 secs reading time)
photo credit: wonker
The fans deserve new ownership…and fast!
No, no…not the Colonel, but his son has apparently made an offer to the Portsmouth leadership. Well, that offer was turned down and before you say “Why would you sell to the Libyans?” let me tell you a story.
Saadi is an ex-footballer who played in Italy for Udinese and Sampdoria. So, he’s a player…a “soccer person” and you turned him down?
He also owned a stake in Juventus. Wait, so he also has investing and ownership experience and you turned him down? Read more... (344 words, 4 images, estimated 1:23 mins reading time)
New West Ham United owners David Sullivan and David Gold have revealed that West Ham United are ion debt to the tune of £110m. Which begs the question: Why did they buy West Ham?
“It makes no commercial sense to buy this club,” said Sullivan after laying out the scale of West Ham’s borrowing. If there was any other club in this situation, then we would not be buying it. We bought this as supporters, not from a business point of view.”
CB Holdings, who retain the other 50% ownership in the club, had said the Hammers had debts of £38m, but Sullivan disputes that number. Read more... (255 words, 2 images, estimated 1:01 mins reading time)
Manchester United now owe creditors a mind boggling £716.5m ($1.17bn), according to its latest accounts. This is the first time that United’s debts have passed £700m
The company, called Red Football Joint Venture, is owned by the Glazer family and they secured its debts against the football club as part of its United takeover in 2005.
United’s financial officers are currently on a global trek trying to get investors to buy £500m of bonds that will be used to refinance the club’s debt.
When you have £716.5m in debt, your interest payments are huge. Last year United paid more than £69m was paid out in interest alone over the year. Read more... (149 words, 3 images, estimated 36 secs reading time)
Things just keep going from bad to worse at Portsmouth.
Today former Portsmouth defender Sol Campbell has said that he is suing the Premier League club for £1.7m in unpaid fees and bonuses from his time at Pompey.
Portsmouth confirmed the receipt of the writ today and a club spokesman said: “The matter is being dealt with by our lawyers.”
Pompey are walking a financial tightrope and I would not surprise me if they became the first Premier League team to go into administration, which would carry an automatic nine-point deduction. Read more... (225 words, 2 images, estimated 54 secs reading time)
So Portsmouth have again failed to meet a promise to pay players their December wages.
Players were expected to be paid on Tuesday, but that was pushed back again as the club struggles to raise the cash needed. This is the third month in which the players’ wages have been delayed.
Pompey chief executive Peter Storrie hinted players may now be sold.
“If the way to keep this club alive is to sell a couple of players again, we will have to do that – but it will be an owner’s decision,” said Storrie. “If you do not sell, then you could well be going into administration.” Read more... (181 words, 3 images, estimated 43 secs reading time)
Manchester City reported the impact of the first part of their spending sprees with the news that they lost £92.6m last season.
The figures are through May 2009 so they include the £32.5m signing of Brazilian star Robinho in the January transfer window, but not the summer purchases of players like Carlos Tevez, Kolo Toure and Emmanuel Adebayor.
City was bought in September 2008 by Sheikh Mansour and since his arrival City have spent over £200m signing new players. Those new players have, as of yet, resulted in an increase in City’s revenues. Read more... (295 words, 3 images, estimated 1:11 mins reading time)
I was shocked to read on the Chelsea web site that the team is now effectively debt free.
So what happened to the £600+million that Roman Abramovich had put into Chelsea since he bought the team? Well it appears that Amramovich turned his interest-free loan to the club into equity (shares), thus wiping out the club’s debt.
The club’s statement on this is:
“Following previous conversions of half of the debt, the remainder of the interest-free loans from the parent company, whose ultimate controlling party is Roman Abramovich, have been converted into equity making the group effectively debt free.” Read more... (410 words, 3 images, estimated 1:38 mins reading time)
