When it comes to economic comment the Guardian tends to be fairly sound. Here they are on the Liverpool situation.
“Liverpool are very heavily in debt and do not own a cash-generative stadium. If they do not qualify for next year’s Champions League group stage – which, even if they do not progress, provides a minimum £10m in revenues – they could not service their borrowings.”
Just think of that for a moment. The club is so fragilethat just a single season where they don’t manage to get into the Champs League and then past the group stages and they will not be able to pay their debts. Could be this year, could be next. One average season away from disaster.
Now the Guardian on Manchester United:
“Provided buyers could be found (no longer a given as sovereign-wealth funds equivalent to the Abu Dhabi United Group spy far more profitable targets at bottom-of-the-market bargain prices) both clubs would have to be sold. If they were “flipped” in a fire-sale it would probably be at a considerable loss to their American owners.”
Manchester are already unable to pay the interest on their debts, and all that is left is a sale – but a buyer is no longer certain.
Chelsea, (by which they mean CSKA Fulham of course) the Guardian says, is safe, as long as its owner is interested. Arsenal’s debts are all secured against the stadium, at a very low rate of interest (unlike the debts of the northern clubs which exceed the value of the assetsand so are at much higher rates of interest), so they have no problem.
What the Guardian does not say is that Arsenal’s future is based on crowds of 50,000 and Champions League once every four year. We are doing rather better than that at the moment.
Thus it looks like we will soon see a Big Two – both in London – with Manchester Arab playing catch-up.
As for such joke outfits like the Tony Totts they are a club that has been bred on the basis that they get into Europe and are then sold on as a top four club. Yes, well.
Although the Tinies, like Everton and the Newcastle Zebras are for sale no one is rushing to the door with a cheque book. The clubs that are going to new ownership are the little ones. QPR went last year to a consortia of Formula 1 men and an Indian company. Charlton, it seems, is about to fall into Arab hands.
And why not? Easier to build from the bottom with fans grateful for any success than have to deal with a bunch on endlessly whinging Scoucers and their enemies from just down the road who think that success can be bought eternally without ever having to pay the bill.
So, sorry Tiny Totts, I rather think that it is all over for you. Just as it is for Manchester Bankrupt and Liverpool Insolvency.
Let’s sit back and enjoy the show.
