Author Topic: Football debt  (Read 3414 times)

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Xpresso

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Football debt
« on: May 04, 2016, 12:03:25 PM »
Part of a Swiss Ramble piece on QPR puts the combined debt of Premier League clubs over the last four years at nearly three-quarters of a billion pounds. Written out, it's £729,000,000, a staggering sum of money.

It makes a mockery of so-called Financial Fair Play.

QPR have amassed loses of  £203 million, followed by Manchester City with total losses for that period standing at £163 million. Then come Villia with net losses of £101m. Even Leicester's title success is somewhat tainted by their £58m deficit.

Only ten clubs are in the black, according to the Ramble study. Our combined profits of £23m for that period put us at seventh equal with Manchester United in that particular table. Spurs and Arsenal are the top two, with combined profits of £88m and £70m respectively, though's Tottenham's figure is largely attributable to the sale of Gareth Bale. Newcastle are third in that list with £66m - would they be fighting relegation if they'd spent a bit more of it?

SmethDan

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Re: Football debt
« Reply #1 on: May 04, 2016, 12:10:37 PM »
Part of a Swiss Ramble piece on QPR puts the combined debt of Premier League clubs over the last four years at nearly three-quarters of a billion pounds. Written out, it's £729,000,000, a staggering sum of money.

Don't mean to be pedantic but it's written out as £729,000,000,000.

But I think you're right regarding the FFP sentiment.

Ed: And yes, it really is a staggering amount of money.
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« Last Edit: May 04, 2016, 12:12:40 PM by SmethDan »
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The Black Pearl

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Re: Football debt
« Reply #2 on: May 04, 2016, 12:34:13 PM »
Part of a Swiss Ramble piece on QPR puts the combined debt of Premier League clubs over the last four years at nearly three-quarters of a billion pounds. Written out, it's £729,000,000, a staggering sum of money.

It makes a mockery of so-called Financial Fair Play.

QPR have amassed loses of  £203 million, followed by Manchester City with total losses for that period standing at £163 million. Then come Villia with net losses of £101m. Even Leicester's title success is somewhat tainted by their £58m deficit.

Only ten clubs are in the black, according to the Ramble study. Our combined profits of £23m for that period put us at seventh equal with Manchester United in that particular table. Spurs and Arsenal are the top two, with combined profits of £88m and £70m respectively, though's Tottenham's figure is largely attributable to the sale of Gareth Bale. Newcastle are third in that list with £66m - would they be fighting relegation if they'd spent a bit more of it?

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Re: Football debt
« Reply #3 on: May 04, 2016, 12:38:22 PM »
Don't mean to be pedantic but it's written out as £729,000,000,000.

But I think you're right regarding the FFP sentiment.

Ed: And yes, it really is a staggering amount of money.
Jumpers for goal posts anyone  ;)?

surely what you have written  would be 729 Billion? Isn't a Billion 1000 million?  if so the original poster was right with his £729,000,000 being 3/4 of a billion.
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SmethDan

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Re: Football debt
« Reply #4 on: May 04, 2016, 02:35:42 PM »
surely what you have written  would be 729 Billion? Isn't a Billion 1000 million?  if so the original poster was right with his £729,000,000 being 3/4 of a billion.

Absolutely correct!
 :P.

I didn't read his post correctly, missed the 3/4 bit and thought he meant 729Billion as you say.

Sorry Xpresso and cheers HullBaggie.
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darbolina

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Re: Football debt
« Reply #5 on: May 04, 2016, 02:39:01 PM »
Shouldn't clubs really be penalised for running large debts e.g. points. Why should they gain an advantage through gambling their turnovers when others play within their means? I would say this being an Albion fan of course!!!


Albionic

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Re: Football debt
« Reply #6 on: May 04, 2016, 03:23:13 PM »
Shouldn't clubs really be penalised for running large debts e.g. points. Why should they gain an advantage through gambling their turnovers when others play within their means? I would say this being an Albion fan of course!!!

yes, and the laws of business and economics says they will, when is the real question!
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darbolina

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Re: Football debt
« Reply #7 on: May 04, 2016, 03:26:12 PM »
I guess it will if/ when they get relegated and/ or if/ when the TV income dries up?


Standaman

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Re: Football debt
« Reply #8 on: May 04, 2016, 04:21:16 PM »
A link to the Swiss Ramble article

http://swissramble.blogspot.co.uk/2016/05/queens-park-rangers-they-cant-buy.html

Debt isn't a problem. Having debts that club's cannot service is a problem, FFP was never designed to limit clubs borrowing it was designed to stop them losing money and using debt to plug the gaps in their balance sheet. In point of fact the general level of indebtedness relative to clubs income has declined markedly in recent years.

The Premier League's two biggest debtors are Man United and Arsenal both cover their interest payments comfortably and are generally  profitable therefore the debt does not present a problem. The true ugly ducklings are Aston Villa and Sunderland both losing money in the Premier League propped up by owner debt  one is down and the other might yet be relegated that is when debt is a problem.

As for QPR it is almost unbelievable that so much money has been spent with so little to show for it. 
« Last Edit: May 04, 2016, 04:45:22 PM by Standaman »
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