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Posts tagged ‘administration’

Jan 12

Darlington
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Dead as a Darlo?

Variation on the ‘dodo’ theme, but let’s hope extinction isn’t just around the corner.

Whilst, one club, Weymouth, gets a firmer footing and will revert back to full-time status after a torrid time, poor Darlington lurch from crisis to crisis.  I have feared the same fortunes for my beloved County.

Darlington could cease to trade this week, unless a new owner is forthcoming, according to administrator, Harvey Madden.  White knights are not as prevalent these days!  Darlo are in administration now for the third time in recent years.  The Administrator comments: “Things are still dire. We have not had any definite interest. We have seen a hell of a lot of people interested in the last week. No one has taken it a step further and quite a few have withdrawn. Without money, the club will not survive. I will have to make decisions by the end of the week and assess it.” Deja vu – Stockport County?

Sep 23

Spanish football

Reign in Spain

Over in continental Europe, Spain’s Government has taken a significant step to outlaw a previous, controversial law which allowed clubs that were strapped for cash to avoid relegation by going into administration.  I’m sure Barry Hearn wouldn’t have liked this law much! 

Racing Santander was the last club to seek protection from creditors under the former law, in the summer.  Others that have taken this unfair advantage have included big brands such as two of the ‘Reals’: Mallorca and Zaragoza (a member of my family is on the management team there).   I can’t help but smile here, thinking of the Turks use of ‘Real’ in an attempt to avoid passing-off and copyright (aka ‘Real’ Koç).  Players and the indigenous Trade Union have applauded this move, said to be a key reason for the stand-off and strike pre-season at La Liga.  The dispute between Spanish footballers and the Professional League has just been rectified with players finally agreeing to call off strike action.   The players apparently account for a liability of some 50 Million Euros from clubs using the Law to not fulfil financial obligations, amongst other reasons.  “This reform will prevent the undesirable use and abuse of certain instruments of the bankruptcy law and ensure stability and equality in sports competitions” – the Government has commented, according to Reuters News Agency.

 Twenty-one clubs in Spain were either in administration, recently exited or in the process of applying. So it’s officially an epidemic?  A tightening up of laws can only help create that ‘level playing field’!

Jun 11

Football Book

Deloitte reports

It’s that time again – the birth of “Deloitte Football Money League 2011” report. Now in its 14th year, often an interesting barometer on football finance and good PR for Deloitte!

You can download the Report.  Some key contents:

(1)    The full ranking of the top 20 Money League clubs including total revenues and the breakdown of the three sources – matchday, broadcast and commercial incomes. 

(2)    Feature article assesses each of the three key revenue streams, listing the top 20 clubs for each, whilst comparing and contrasting these lists with the overall top 20.

In the English Premier League (EPL), clubs posted an all-time high with losses of £445M.  This, the result despite generating record income of £2Bn.  Though note with a time lag in reporting the analysis relates to pre-tax losses in financial year 2009-2010. Of the top 7 clubs in EPL only Arsenal made an actual profit! Is Wolverhampton Wanderers the UK’s top football club? 

A Division below, the Championship League shows a similar trend with £133M losses.  There are plans to adopt “in principle” financial rules similar to those designed by European soccer’s governing body, UEFA. This it is envisaged will reduce insolvencies in the game. Watch this space?  Too many ills in my view to expect improved health in English football overnight, without a new and improved ‘medication’!!

May 24

Stockport County Wembley
2 Comments

Gannon mania

So the head ‘lady’ has relinquished her throne. Without the Gibbons in post, the chances of a Jim Gannon return may have lessened. Not only were they his strongest advocates at Board-level, but close family friends. They even adopted his cat!

His first stint in English management was a success with League 2 survival from the ‘jaws of extinction’ – followed by promotion via a Wembley-play off against Rochdale. This time certainly heralded the development of some good young players before the financial woes and need to sell them. Remember, Tommy Rowe, Anthony Pilkington, Liam Dickinson to name but three. The latter’s boots are proudly displayed in our offices. Were these players the results of ‘JG’ or do Peter Ward (assistant) or Alan Lord (youth) deserve the credit?

But can a return to a former managerial seat work? Not always. Gannon was released by the Administrator as an immediate cost-cutting. His remuneration package at that time could most definitely not fit with a package suitable for the Blue Square Premier League hierarchy. His character has been questioned by some former colleagues. The CV and trail from latter posts at Motherwell, Peterborough and Port Vale have shown different traits. It has been suggested that he wouldn’t speak to SKY in interviews whilst at Edgeley Park, because of a dispute over his installation of satellite dish.

He remains a fans favourite. The final note has to go to our ex-Uruguayan maestro, Danny Bergara (R.I.P), when asked about the qualities of Jim Gannon by another manager:…”I hear he’s a bit volatile?”. Danny’s reply: “Oh yes, very volatile, he can play anywhere”.

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